Reinvigorating People and Processes in the Wake of COVID and Brexit

It’s been quite the couple of years for procurement and the rest of the supply chain industry in the UK. Not only have we had the global crisis of the COVID-19 pandemic to deal with, but also had its challenges augmented by the challenges of our withdrawal from the European Union.

As we see ever more daily evidence of Project Fear becoming Project Actually Happening and the SARS-COV-2 coronavirus continuing to cause serious disruption around the globe – and that’s before we even get into the massive national shortage of HGV drivers – the time has come to take stock and make sure we have the people and processes in place to deal with this staggeringly new “normal.”

Firstly, we must be prepared for and accept that procuring items from the EU – or indeed anything which must come through the EU from a more distant land – is going to continue to be challenging for the foreseeable future. One only needs look at the state of the situation in Kent to realise that. Not only should we expect shipping delays from these countries, but there can also be extra customs charges for larger orders.

This may mean it is better, in the current climate, to procure from within the UK borders where possible. Of course, our overreliance on Asian products has left UK manufacturing in rather a sorry state, but hopefully this is something that will change now COVID, and Brexit have exposed the weakness inherent in that reliance.

Solutions

Analysis from McKinsey has revealed that procurement organisations would be best served by focussing on strengthening the resilience of supply chains, investing in supplier partnerships and innovation, accelerating digital transformation and the adoption of analytics, and making sure people and processes are agile enough to adapt to the ongoing fluctuating situation and to any future crises which may emerge.

“While procurement can play a crucial role in recovering from a crisis, this time procurement leaders will want to take a different approach to the function in addressing a range of new issues,” writes McKinsey in its report. “Today, in addition to recovering profitability and finding ways to preserve cash, companies face the added challenges of shifting supply-market dynamics, changing ways of working, increasingly volatile demand, and de-risking their supply chain to make it less vulnerable to disruption.”

Final Thoughts

There is no doubt that the double-whammy of Brexit and COVID have created a perfect storm for procurement disruption and challenge. This is not a Remain vs. Leave argument anymore, but a question of dealing with the reality of the situation as it actually exists.

We need to make sure we have the right people and processes in place to, not only, effectively handle the supply chain landscape right now, but that also have the resilience, agility, and flexibility to adapt to change and respond to a rapidly shifting and evolving one.

By addressing the various shortages and weaknesses we have in the industry right now and making sure we don’t underestimate the potential for change, the procurement business can continue to be a powerful force for innovation.