PROCUREMENT
42 contract has to be managed . Outsourcing often involves a contract for provision of a complex service and to manage this effectively a resource should be retained which understands the complexities of this service . Poor contract management as well as insufficient resources and poor data are frequently cited as reasons for outsourcing contracts not delivering the anticipated value .”
Malcolm Harrison , CEO , CIPS Group
With the worldwide disruption of COVID-19 impacting businesses across the world , Nic Walden , Senior Director , Procurement Executive Advisory Membership Programmes and Melani Flores , Associate Principal at The Hackett Group reflects on the impact to procurement in the immediate aftermath of the pandemic . “ It ’ s clear that across different industries the impact is different , but the initial impact has been primarily operational ,” explains Flores . “ It ’ s been important to source new goods , such as PPE , to ensure that factories can continue to operate in safe conditions . This is in addition to responding to changes in demand and working with suppliers to look for substitutes for products or services that have been affected by the pandemic .” Walden believes that the COVID-19 pandemic is very different to the financial crisis of 2008 . “ Although it ’ s been a terrible crisis for everyone involved , procurement has actually benefited from COVID-19 and has been elevated to a more strategic role ,” explains Walden . “ However , it ’ s too early to say how much of an effect the pandemic will have on procurement outsourcing in the near future .”
AUGUST 2020