We heard from 250 procurement specialists from around the globe.
We witnessed unprecedented, multi-sector supply chain breakdown. An unrecognised fragility was exposed.
Associate director, procurement at cdph
A Shift in Procurement Criteria
A notable shift took place in 2020. Price took last priority in customer’s needs, where products that ultimately save lives were valued very highly. Where price formerly took a high priority in the eyes of a procurement team, this is now second to supply certainty. The weakness of supply systems being revealed in 2020 has opened eyes and minds into new procurement values.
Procurement Challenges: Before and After
Pre-Pandemic
- Supplier Innovation
- Account Management
- Supplier-related Issues
- Regulatory and Decision-Making Process
- Risk Mitigation
- Dark Purchasing/Maverick Spending
During Pandemic
- Supplier Validation
- Regulatory & Decision-Making Process
- Cost
- Supply Certainty
Post Pandemic
- Supplier Innovation
- Account Management
- Supplier-related Issues
- Redesigning & Rebuilding Supply Chains
- Risk Mitigation
- Funding Models
Procurement teams need support, not simply sales.
The top ten suppliers have done the same thing for years. It’s about trying to find innovators. Not just a product, but a service. There’s a lot of new suppliers, around true partnerships, what are they going to do that’s going to be different?
DIRECTOR OF PROCUREMENT AT PRIVATE HEALTH ORGANISATION AUSTRALIA
Local Manufacturing
15% Experienced Fraudulent Products.
We have a long list of fraudulent products. We did all of the searching & due diligence on suppliers, we tried to import from offshore suppliers but that was a minefield.
Procurement officer, government agency
We worked closely with the certification authorities (TGA) to ensure the test reports were correct. Our manufacturers had their product tested locally.
clinician, private hospital
One statement to wrap it all up?
“Our supply chain had become complacent & cumbersome. It broke and we hurt. Going forward we will be looking for a more nimble approach with agility that allows us to flex with unpredictable external influences.”
Head of Category, NHS
