Supply and Purchasing Ideas
Four Emerging Supply and Purchasing Ideas to Look Out for in 2020
In many businesses, procurement is wedded to routine, perhaps more than any company feature. Companies continue to negotiate with their existing networks of suppliers or services every year, ignoring or allowing endless economic and political intervention in their procurement of materials. For the past couple of years in an era of relative stability, many purchasing managers’ skills and perspectives were created and did not change. Now, however, purchasing should be maintained, recognized, and adapt to global environmental and economic changes together with other departments.
Progressive product managers and their teams preparing for the next year with 2020 just at the door. Here are four main trends in procurement to influence your thinking.
Supply and Purchasing Ideas
Supply and Purchasing Ideas
Progressing Technological Advancement
For many years to come, we will explore digital transformation. There is a strong chance. This is because true digital change is an ongoing process. Technology has quickly become an imperative for top-level procurement. Those behind the times will have to catch up this year, especially as the larger company will probably experience its journey of digital transformation.
More technology is now available in the procurement area than ever before. Perhaps the most difficult part is to know which tools to choose and whether to choose end-to-end services or a combination of the best breeds. It is important to focus on technology for its usefulness and not the technology itself. What’s best for your company depends on your particular circumstances. In general, large investments in tools for spending analysis, supply retail management, contract management, and risk management are expected to take place in 2020.
Supply and Purchasing Ideas
Increase in Overall Market Volatility
During the next 12 months, market volatility could be an all-time high due to the shift in trade tariffs and obstacles, the unpredictability of Brexit, and fluctuating commodity prices. Because global supply chains have become even more predictable, it should be the highest on your 2020 agenda to find ways to manage this risk. In practice, what does that mean? It ensures that vendors are followed up with procedures, safety problems, and uncertainty linked to goods.
The basis is visibility for the future and appropriate market intelligence which can lead to insights and tangible actions. Investments in analytics and predictive modeling in these fields can also be very helpful. Also, there are tools designed specifically to help procurement companies anticipate change and handle disruptions gradually.
Supply and Purchasing Ideas
Looking More into Value
The primary objective of the procurement will always be achieving savings. It is becoming more and more clear that procurement agencies can provide value that far exceeds cost savings, cost containment, and cost reduction.
Over the last few years, the sophistication of the procurement function and the available talents have grown dramatically. Selling, general & administrative functions have also been higher expectations. In 2020, the time for procurement is time to show how this can contribute to larger strategic objectives, as C-level plans require increased growth, faster innovation, tighter budgets, and increased productivity.
Supply and Purchasing Ideas
Developing Relationships between Suppliers
Somewhere in your department, you almost certainly discussed building better relationships with suppliers. Everybody recognizes that procurement teams have a strategic priority. Nevertheless, it is easier to implement plans than to postpone them.
We frequently see procurement organizations, which are incoherent in both categories and supplier segments. Nonetheless, in 2020 we expect that the most forward-looking and innovative departments will follow a more organized and effective strategy.
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With this time of pandemic there our a lot of business that had been shut down or closed. I think the best way to have an income is through online business, online jobs. So that some of us can still earn and provide for the family. Since technology is developing more and more we need to learn to develop our skills using technology.
With COVID-19 affecting all businesses, can the “ideas” presented in the article still useful? What would be the best option?
The ideas presented in the article is still useful even this time of COVID-19 pandemic. But I think the best option is developing good working relationship with suppliers. In every transactions, contracts and agreements the most important factor is mutual trust. It should be develop from the very beginnings of each business engagement. And should be cultivated from to time to time until mutual respect and trust fully developed. Whatever your business requirements, services & logistical needs, utilities and other essential there are partners suppliers who could help your business grow and develop. That is why it is necessary to established strong and mutually beneficial long-term relationships.
Especially now that there are restriction and limitation in the supply of chain, you can avoid unnecessary cost if you have existing contracts with suppliers. In terms of pricing you can engage in more modest and flexible pricing models. We know the price in market is very sensitive, so in order to eliminate risk and exposure existing contracts must be in place.
Relationships with trusted supplier can help the organization or your business in critical activities and outsourcing.
So, it is necessary to establish good working relationships with suppliers and business partners.
With the uprising cases of the novel coronavirus in the world, a lot of precautionary measures where implemented by world health organization to avoid it such as mandatory travel bans, enhanced and general community quarantines, lockdowns, and work from home policies.
With the above mentioned ideas regarding the issues faced by business entities, it is still useful and applicable to all businesses. But we need today is technology. Upgrading our technology and giving it free to the community.
Technology is one of the essential needs in the business. As the year increases, we lean on it more and more. Innovating and upgrading the technology is the best way to make the business sustain and survive with this pandemic. This is because the technology will help us reach out your suppliers and clients. With great online connection it will provides more faster, more convenient, and more efficient way of performing business transactions.
Now that the Novel Coronavirus cases in the world are in the seventh figures and the number of deaths is inevitable. The best thing that we can do now is to keep ourselves safe because life preservation is more important than money.
Upon reading the article and contemplating on it, yes I agree that the different ideas presented are very useful. With this pandemic brought by COVID19, people engage in business should take a consideration in the trends in procurement. I think d most priority is progressing Technological Advancement. Since a long period of lack down, the production was stop also and as a result, scarcity of products especially the most need on this pandemic. Supplies are running low around the world, from masks and toilet paper to hand sanitizer and other basic necessities. A mass production of the necessary products is in need that’s why technology is very important to support and provide the needs of the customer. Investing in technology for the reason to support remote work and virtual collaboration capabilities is a wise move also to sustain the business.
Even though COVID-19 is affecting all businesses, I think the ideas presented in this article are useful to some extent. COVID-19 limited the trading done from one country to the other due to the disallowing of certain goods and this is especially affecting the technological machine purchase. Market Volatility on the other hand is clearly seen in our economy because of the increase in purchasing patterns in some of the commodities. I think though that the best option is still to maintain the relationship a company has with its current suppliers because of the bad predicament that a company is now in. This will encourage loyalty in the making.
With the novel corona virus, everyone is experiencing lock-downs, quarantines, and work from home. Those employees who were forced to work in their home is only depending on their internet connectivity and technology. the ideas presented are still useful even if COVID19 is affecting all business but in my own opinion, the best option would be Progressing Technological Advancement because technology makes people’s lives easier and more secure. Technology allows businesses to speed up production processes. with technology, you can analyze how productive your staff is spending their time to make your systems more efficient. You can now connect with your colleagues any time from any location, improving your company’s flexibility to deal with inquiries quickly and efficiently. Modern technology allows companies to keep records safe and implement systems that can only be accessed internally by the limited authority. with pandemic cases like this, you can still monitor your business and develop a relationship with your employees, suppliers, and customers with the use of technology.
It’s a scary time to go shopping. There are shortage of all sorts of odds and ends and knowing what you actually needs to get you through the covid-19 pandemic can feel super stressful (Wired,2020).
Technology is now the largest change agent and driving force in today’s society and digital connectivity world. These platforms include a combination of spend analytics, e-sourcing, contract management, e-procurement and e-wallet (e-catalogs e-invoicing) (Khoo,2018).
Make technology work for you. Best-in-class companies understands that “the system” should help them better manage their supply chains (Engel, 2011).
With covid-19, businesses are affected with this pandemic disease, in contrary, businesses should not stop giving services to the people. Technology advancement and progression can help businesses to still perform their duties and responsibilities to their nation and consumers. As what has stated above technology has quickly become an imperative for top-level procurement. For businesses, the use of technology is a large investment to choose but a wise choice to pick during difficult circumstances. The idea of tech advancement can help business after covid-19 to innovate and focus on surpassing building blocks along the way.
In this article, all statements are useful but the best option for businesses in this covid-19 is to create and enhance mature digital technologies, scientific advancements, usd of artificial intelligence, make use of technologies usefulness like using chatbots and online procurement will constantly boost new ideas and skills to the organization.
The future of procurement is all about intelligence (Khoo, 2018). Larger company and international business experiencing its journey of digital transformation. Scientific advancement create advantage for the situation of the world today. Making a choice can make a change and putting an investment in a good pick and secure technologies can give the company an affirmative data that will be both beneficial to the supplier and the buyer.
Indeed COVID-19 has greatly affected not only every person on earth but also the entire economy. All the four emerging supply and purchasing ideas are useful.
Progressing Technological Advancement as we all know are necessary for every business. Most individuals now relay too much on technology especially when we have the fear of going out in public due to the COVID-19 situation. We use technology to pay our bills, for communication, or even for work both at the office and at home. At this moment, work at home is encouraged.
Increase in overall market volatility is to be monitored. With the help of technology and the availability of data, predicting the supply chains are more predictable. But with the COVID-19 outbreak, the prediction has been disrupted thus has given us difficulty in predicting such changes. But through this experience, it will help us more in the future to identify the risk if such similar situation occurs. Right now, we cannot predict precisely the rapid changes in the market, a lot has changed. The demand of medical supplies has increased greatly. Unfortunately, a lot of manufacturers are from China, which is the heart of the COVID-19 outbreak. A lot of manufacturing companies producing such supplies has seized in operations temporarily and transportation has abruptly stop. This alone has abruptly changed on how we such manage such risk in the future.
Looking more into value is really a must today. The more value you get for a lesser cost, the more profit you will have. The cost of every product is greatly monitored these days and this is the time wherein value for money is always better.
Developing relationships between suppliers is a key for every business organization. Trusting your supplier helps greatly in the success of each business. Better deals, quality supplies, and security of each product and delivery gives and edge to every business entity.
All these elements are useful and essential but the best of option of all is the first, Progressing Technological advancement. Technology if maximized and done right, will help you maximized also the remaining elements. Technology makes things better. Communication through technology, monitoring the market through technology, preparing budget accurately through technology, and many more.
On the COVID-19 outbreak, technology plays a great role. Reducing the presence of workers in the workplace helps eliminate the spread of the virus. Social distancing can be done without affecting the business by having some employees especially executives work at home and this can be maximized by the help of technology. Technology is very essential today.
The Coronavirus outbreak is now a global pandemic, according to World Health Organization. Understandably, companies are concerned about the spread of the virus and its effect on their business. Amidst the Covid-19 crisis, ideas presented above can still be use in many businesses. These ideas can be use as strategic roadmap towards transitioning to have effective procurement strategy that can save businesses from downfall. Some private companies mobilizing to address shortages of masks, medical supplies and sanitizers. SpaceX and Tesla have shifted to manufacturing ventilators. Endless West shifted their production from distillery to making sanitizers and Markforged focused their efforts on 3D printing of personal protective equipment for healthcare workers most exposed to Covid-19.
Amidst this pandemic, technological advances in procurement seem to be the best solution. It is true that almost everything is now digital. Sears, a retail store had to close several stores because of lesser foot traffic. I’ve seen this even affect a BPO in the city – it had to close down the account because it could not keep up with emerging online shops. Forever 21, although having a massive store in SM City Bacolod, the reality of this company is evidently bleak in the US. While these examples are on the buying process, it’s relevant to the same topic of the digital market. Lesser foot traffic means lesser human interaction which definitely is what’s needed in this time. Social distancing is believed to flatten the exponential curve of COVID19 so procuring supplies online and making these transactions with the use of technology may be able to save a business during this crisis.
This era disrupted with a pandemic, an unprecedented horrible situation has changed the way we look,understand and deal things. A major shifts have occured and all we need is to adapt with this drastic changes in order to keep going. Business closures are just around the corner, you hear over the news that many business establishments have left with no choice but to close their business.
This blog has taught me many usable things that international business could apply in this crisis going along brought by Corona Virus. A virus that not only claimed lives but also things we usually do in our operations in the business. The above mentioned purchasing ideas are still applicable in this time of uncertainty so let me discuss it to wit;
Progressing Technological Advancement. As we aim for effeciency and thrive to do our business innovatively, technological advancement integration is indespensible. This crisis teaches us to utilize technology more that how we see and treat it before. Some companies were disrupted in terms of their operations since their purchasing and supply chain have been modified that pose a challenge to our procurement processes. Air and sea travels are now postponed due to the possible transmission of the disease but for some multi national company around the globe see now technology to be their partners. Utilizing it to to maintain available stocks.
Market Volatility. Tariffs and obstacles indeed was amended and increased that cause us to spend more while earning less as we compare it to our business operations before. It’s hard now for us to transport our raw materials for example to produce our goods. Businesses should continually open its channel with their suppliers. International market/business now has limited supply thus, limited products to offer and now sales will be greatly and adversely affected. Businesses should be flexible since unpredictability of supply and purchasing seemingly appear.
Looking more into Value. International and multinational businesses now have declining sales that never been anticipated so to address this problem they need to save and be more pragmatic, find equally good products in order to save and looking more now into values is vital. Find other substititute product and supplier to meet your demand and business status.
Developing Relationship with Suppliers. Building rapport to our suppliers is just like creating trust. Partnership now enters, if we continually practice such, channel of communication will be enhanced. You may now comfortably ask for business agreement that will give you an advantage at the same time not compromising theirs.
Managing our purchasing and supply chain seems so challenging and incorporating accurate and appopriate ideas are neccessary. Anticipating possible future scenarios should be our top priority through assessing blog mentioned factors this could help augment our disrupted chain which is the root of our business. Purchasing managers should look into it so to survive and be not one of the businesses that were forced to declare closure and bankruptcy which we all want to avoid.
The strategies would be helpful at this time since the economy would be having a hard time because of the pandemic. When it comes to technology the transactions would be much easier and reliable for faster transactions. Since the demands are high at this point the relationship between suppliers is a must to avoid misunderstanding in all aspects. In this, you can plan and give both your efforts and could benefit both parties. When it comes to value businesses should be more transparent for the quality of its product and the control of its quantity. If the demand would be high definitely the supply would be low so businesses should be very careful and precise with their strategies.
Question: With COVID-19 affecting all business, can the “ideas” presented in the article still useful? What would be the best options?
Answer: The progress of the advancement in the world of purchasing is a thing cannot be prevented. It can be slow down by the present pandemic. The four ideas presented are still useful. Of the four, two will standout as the greatest challenge especially with the limited human movement during this pandemic scare. 1.) Progressing technological advancement. 2.) Developing relationship with suppliers.
1.) Progressing technological advancement is the made competition in the present modern era of business and that includes in the field of purchasing. The inability or maximize advance technology will be in itself be a advantages already and a possible reason for loss or failure. That means there is no way but to go on with learning of technology to still be relevant in the modern world of purchasing. COVID-19 may be a cause of delay, but modernization will never stop with this pandemic.
2.) Developing relationship with the suppliers. This is the greatest secret of successful purchasing in business establishment. Even how learned you are or advance in education when there is no mutual relationship of good social communication between purchaser and supplier, there is still the possibility of supply bug down and that is what we do not like for supplies that are emergent. To limit these occurrence, there is a need to foster strong bonds and relationship that will entail assurance of supply in hardship and in comfort times.
In this current situation, these emerging purchasing ideas will be very useful. COVID-19’s impact is not going to be a short-term crisis and therefore success goes to businesses that take in, familiarize themselves and manages change since the implications on how the supply chains function will be long term because of COVID 19. As per what would be the best option, since all have a strong point, I think all 4 ideas can be integrated to back up the business’s supply and purchasing strategy. As they need both human skills and digitalization to be resilient in this time of crisis.
As Covid-19 affects all business in economy, the best idea is to look more value to purchasing and supply. Supplying and purchasing valued products that suits to people needs could satisfy them. Valuing product that is helpful in this pandemic season will suits for business objectives to enhanced and identify new products opportunities, bring access to new markets or technology, and established relationships with other departments. Choosing suppliers that add value and drive innovation of using latest equipment, technology and processes may apace its adaptability of curing global pandemic, especially healthcare needs.
COVID-19 a global pandemic is affecting the health of the public and it’s also impacting the economy. With the given ideas above, all of them are still useful to all businesses. Progressing Technological Advancement is one of the best. Electronic technology and machines being produced and improved all the time will lead to an increase in productivity in all production factors. For example, Internet transactions will generate great externalizes in society and economies. These developments can improve the speed, quality, and cost of goods and services.
The start of the year 2020 is quite challenging for businesses. With COVID-19 in arise, it tests the procurement strategies of every business. From travel ban, enhance community quarantine and lockdown policy implemented by the government, buying and selling of goods are somewhat difficult to transact. Accompanied by the rising demand for PPE, medicines and basic needs, it is essential for the procurement manager to review and strengthen its game plan to sustain the demand of the company.
The above-mentioned supply and purchasing ideas are very useful for today’s present scenario. For me, Developing Relationship between Suppliers is the best option. Having and maintaining a good relationship with your suppliers and partners will make your procurement process a lot easier because there is a mutual trust between you. In times of shortage of supplies, your supplier will help you to acquire stocks essential for the daily operation of your business. Timely delivery and negotiable prices can also be benefited. Thus, it is important to maintain your business good credit standing with your suppliers to sustain a healthy and friendly relationship between your company and theirs.
With the current situation due to COVID-19 pandemic, the global economy is at stake and might paralyzed business operations in general. The ideas presented in the article are useful for businesses still in operation especially those businesses providing basic commodities and services.
Technological advancement is the best option amidst this pandemic, people are being locked-down and quarantined from their houses for weeks to avoid the spread of the virus. This restrict people from buying foods, paying bills to bank/payment centers, and other stuff done outside of their houses. With the aid of technologies, all of the mentioned activities can now be done inside the house through smartphones and laptops – keeping all of us safe from COVID-19 threat.
This COVID19 had caused a great impact on businesses nowadays. In a strong competitive market, a Procurement and Supplies Dept. of an International Business needs to take advantage of the progressing technological advancements. These can enhance the process of procuring materials and supplies. Materials with customized specifications may also be communicated to suppliers in a speedy manner and vise versa.
Developing a healthy relationship with suppliers is important as well. When businesses have the trust and confidence with each other procurement processes also are hasten. Suppliers may even provide materials with more or the same value but at a lesser cost, and terms of payments of payments may be arranged favorable to the procuring company.
For example, in our time today, because of this COVID19 plenty of businesses have been temporarily closed, productions of materials and supplies have been affected and transportations delayed. This leaves the procurements of materials difficult for those businesses that are in operation. But with the right technology, using it in the right way and a supplier having a good business relationship with, procurement of supplies will be made easier.
As the world’s face the COVID-19 pandemic, I think that the ideas in this article are still useful. As we all know that the progressing of technological advancement, in many ways, in this modern world, most of the businesses uses technology in their researching, producing, manufacturing, advertising and marketing their goods and services that they offer. This technological advancement plays as big part in the business today, amidst this pandemic, still many business uses this technologies to reach their market and clients, although we can;t deny that the world economy, the stock market of these businesses has been low since the breakout of this pandemic but still the technology plays as vital role between suppliers, manufacturers, advertisers, marketers up to the customers. When it comes in building/developing relationships with the suppliers, each party must maintain a good communication in order to better understand and implement the strategy and the innovation that each business should undertake for them to survive in the strict competition in the business world. This technological advancement must be used properly and wisely to gain advantage in and to get through the prospect clients and customers, to your target market.
The rapid change change in the market due to the supplies that is unpredictable, the tariffs that being imposed, the freight, the cultural and legal environment, the alliances between giant corporations, the trading systems and other factors that affect every businesses bot locally and globally. The best example of the factor(s), is what happening today, this unexpected pandemic that struck the whole world. the pandemic that struck the global economy, the pandemic that struck not just the economy of poor countries but also the economy of the rich and powerful countries and it greatly affects the small and medium business around the globe, and the companies whether large or small is doing its best to save in terms of their expenses such as the procurement of raw materials to be used in the production, fees in the advertisements, that leads them to innovate, to improve, to devise a strategy that suits in the situations that they face today.
For me the best option is to create a strategy that provides/address the demands of the market, that is cost saving without compromising the quality of the product and services that being offered and be aggressive in advertising though the help of technology. Produce product that respond and cater to the demands and satisfy the needs of the consumers to regain, to recover from the losses due to this pandemic.
I agree with the four ideas presented. In today’s digital age, we need to be updated or advanced in terms of technology is concwrned. Meeting multiple demands from the market, technological advancement is a prime requirement. Other than that, corporations must increase preparedness and transparency. Expecting the worse to the unpredictable changes is one of two steps ahead strategy, to be considered. Especially now that we are in VUCA world.
Prioritizing of more valuable matters is also vital in maximizing the resources. Building rapport is a must to formed stronger ties between suppliers.
Aside from that, after this pandemic i think we should not also forget to consider:
STRONGER SAFETY MEASURES AND PROTOCOLS
This ideas or guidelines is not rare, and this is much expected when the crisi is over. Nations will impose stricter measures in terms of safety. While this is much expected, corporation schould get focus into not only as validation to the implememtation. Corporation should create effective strategies and excellent guidelines for the protection of booth suppliers and their patrons and even with in their members. This also part of a social responsibilty of a corporation.
QUESTION:
With COVID-19 affecting all businesses, can the “ideas” presented in the article still useful? What would be the best option?
ANSWER:
With COVID-19 crisis facing right now throughout the world, procurement plays a very vital role in all business establishments which are vital and essential in the fight against this pandemic. Movement of orders, supplier’s relationship, and other factors that contributes the supply of this establishment to go through. Especially in the hospital industry, procurement of PPE’s, at a lower price at a very good quality despite the fact that all of us in the hospital industry are in a hurry to by PPE’s for our front liners, supplier’s relationship is very important. What a need right now as buyers and suppliers dealing with the need of all this stuff for our fight against this pandemic is fairness and honesty. Fairness in a since that suppliers must distribute fairly their supply to all hospital in need of their stocks and honesty in a since that prices will not be a barrier between buyers as all is affected in the fight against COVID-19.
Supply and purchasing chains are now disrupted due to the pandemic that challenges business both local and international that has been caused by COVID-19 that if the business will not be restored quickly will adversely affect your business stand. Lockdowns in many countries are stll unsure when to be lifted that left international business have no choice but to adapt and be flexible in order to remain. This unprecendented pandemic brought by the virus will drastically slow down economic growth and the question now how will we bounce back and back on track. Are our supply and purchasing ideas still applicable or is it obsolete at this time around and think solution that is out of the box?
This article in emerging supply and purchasing ideas that focuses on progressing technological advancement, increasing market volatility,looking into value and developing relationships are still deemed neccessary in order for the business to stay in the running for long term survival. The reader would like to emphasize the applicability of increasing market volatility during this tough time as it adjust the usual way we are handling our supply and purchases. The best option for the purchasing manager is its volatility in stabilizing and reconfiguring its supplies and products this will start in assessing current operations and outline initial recommendations,establishing command center and begin rapid response deployment,adjust operations and continue response cylcle and lastly creating an ongoing operating capability.
To vividly discuss the above mentioned strategy, In china, some of the fastest recovering companies proactively looked ahead and anticipated shifts in their former ideas and practice in dealing supply and purchasing. In the early stages of the outbreak, Master Cong a leading instant noodle and beverage producer received dynamics in a daily basis and reprioritized efforts regularly. It anticipated hoarding and stock-outs and tilted its focus from offline, large retail channels online to offline, ecommerce and smaller stores by continuously tracking retail outlets, re-opening plans so in this way the company was able to adapt its supply chain in a highly flexible manner.
The global effect on supply chain is very real, with factories and manufacturing businesses closures and the question now is how long will our business sustain? This current crisis has tested supply and purchasing chains in a way not seen previously, so one of the best option is to increase our market volatility.
COVID19 pandemic overwhelmed the world in every way possible. It did not just worsen the health care system but even the supply and production industry that also influences all industries.
To keep the world going either the business is big or small, significant or not that much, they never not need to buy and sell. It may just be simple supplies or their main product, everyone does procurement and build relationships to ease and increase the process. Then here comes an unseen enemy, attacking anyone without bias or doubt! Letting people die without mercy and slowly killing the economy. When everyone and everything seems to be doing great with the adjustment to technology, here comes an economic downturn, a great way to introduce something written in the textbooks to techi and lax millenials.
The ideas presented are still applicable and could still be used this 2020 with just some need of adjustment with the surprise visitor’s entry to the economy. Let’s embrace the change.
The later three suggestions are applicable to all the usual transaction in all business but the emphasis on the first idea which is doing the active progress to technological advancement. If the business had invested generously and smartly with useful and best technology earlier than this year, these would have helped them conquer the loss offered by social distancing and enhanced community quarantine that stopped or delayed business transactions.
With high technology invested earlier, production could still be ongoing to provide PPE’s to health care providers and retailers.
Communication through web conference is more useful now than it was a few months ago.
Technology advancements is the name of the game this coming 2020. All we have to do is to play with it.
Based on the article presented, I think all of this ideas are still relevant. I think we are going to see even more volatility as we try to understand how the economy has changed, since so many supply chains have been interrupted. This makes it even more important to develop strong relationship with your suppliers so that you understand their position and limitations in providing products and services to your company.
With the outbreak of the novel corornavirus, the world are implementing this mandatory travel bans, quarantines, lockdowns, and work from home policies where majority of the companies are faced with balancing the safety, the needs and the health of their employees.
This pandemic is really a new and evolving situation. With the above mentioned ideas regarding the issues faced by business entities, it is still useful and applicable to all businesses.
Progressing Technology Advancement is one of the necessity in business. As the year increases, the world continues to lean on it more and more. Innovation and progress advancement nurtures the business and it needs the technology to sustain and to survive. This is because technology gave a new and better way on how to go about with business. It provides more faster, more convenient, and more efficient way of performing business transactions.
Increase in overall market volatility is also important as it something to be considered when assessing the performance of the stock in business. Volatility indicates the pricing behavior of the security and helps estimate the fluctuations that may happen in a short period of time. The positive side as volatility increases, the potential to make more money more quickly also increases.
Looking more into value. Procurement has an incredible capability for creating value and can do so in many ways. It achieved cost savings, it is the classic way for procurement professionals to create value. Procurement plays a huge part in many organizations’ reliability. When a supplier doesn’t consistently deliver inputs on time, your organization will struggle to deliver outputs on time and cost effectively.
Developing relationships between supplier are critically important to the health of the business. In order to have a good delivery, good service, and good quality, then it need to keep the suppliers healthy and happy. Having a good relationship with your supplier would give you a quality service. Higher quality increases customer satisfaction and decreases returns, which adds income to your business. Timelines will also be applied, their timely deliveries are crucial to how customers view your reliability. . A quick and faster turnaround can become the key to minimizing your inventory, which translates to less risk of inventory and lower cash needs.
Now that worldwide cases of COVID-19 are in the seventh figures. The best option that we can do for now is to keep safe and secured ourselves because life preservation is more important than anyone else. Both money and health are highly important. But choosing between the two, health is very important. Our heath is an asset which generates money but if we choose money over health with a span of time it will deteriorate. It is what a person needed the most in the world to strive for great wealth and future.
This pandemic crisis we are facing now has severely affected our economy. Many businesses are experiencing threats to their revenues. Coping up with the losses incurred, I think the best option on the ideas presented is to make use of the progressing technological advancement. We are now in an era where everything is technologically controlled. Adapting the proper technological tool lessens the workload, expenses incurred and time consumed in procuring supplies for business operations.
Personally, it was during this pandemic that I get to appreciate supply chain more than ever. During the normality of the business, applying end-to-end supply chain was a theory. Especially with the technology the it entails; it cannot compete with the demand of resource allocation against hospital equipment and infrastructure expansion. But when the pandemic diminished the hospital services to its basic core, the attention was diverted to the availability of supplies with prices inflating up to 6 times or more. And by then, the regular retailers were not able to cope with demand. This could have been avoided if the supply chain was established up to the producer level and direct suppliers were readily identified even international ones. Also, the need for logistics partners and movers were realized at this point. But then, hospital industry is not exempt as victim of the retail industry. Wherein large suppliers do not directly transact business with their consumers but delegates to several area divisions. The set up ensures that the consumer’s orders are well met but on the other hand this reduces the buyer’s bargaining power for volume purchases and increases cost. However, despite the current struggle in supply chain, it is very relevant to maintain relationships with suppliers. Goodwill is evident with the support and donations they give to augment operations of the hospital.
Covid-19 has invaded the world instaneously conveying considerable effects to the whole world and in the business per see. It bought so much changes and undesirable effects in the business sector. I believe with this happening right no, the ideas presented in this article remains to be useful and timely. As i said, Covid-19 is an uninvited gueds who happens to be bring serious problems in the business sectors. Progressing techological advancement will be benefecial to them becahse the game of every business now depends on its digital tranformation, if you happen to adapt in the changing demands of technology and considerig its effectivity then more likely you are in the right track. Since everything freezes now because of this pandemic virus the more it requires the aid of technology in order to foster the efficiency of your business. Also, developing relationships between suppliers is very timely because more than anything else, business still boils down to connections. The more you build connections and business relationships with target suppliers and even to customers the better the flow of your business. Stability of connections is what the business needs especially in this challenging days.
Many countries and cities around the world have declared on lock down due to COVID-19 pandemic. All sorts of businesses in the international market are greatly affected. One of today’s challenges is on how to adapt to the massive demands of the society brought by the pandemic. People are panic-buying though production and manufacturing companies assures the public that they have enough supply to feed the market during this crisis. On the other hand, manufactures of medical equipment needed to combat that virus should take on an extra mile to produce the needed equipment in order to safeguard the worrying public especially all the front liners who are risking their lives to save the affected patient.
The ideas presented in the article is very timely. Businesses should start making their contingency plans on how to acquire their products once the pandemic has subsided. We know that import and export industry suffered a lot brought by COVID-19. Businesses may expect a price rise on the products and may cause a price hike in the market at the end. Fortunately, with the advancement of technology , it is easier for the businesses to source out suppliers that would qualify the needs of the business. I believe that good relationship with the supplier is very essential in doing the business especially in times of crisis. If you have a good relationship with your supplier, rest assured that you are on their priority list of important client. Regardless of the situation, your supplier will be there to deliver your required products no matter how difficult it may seem. It will bring a smooth workflow process since trust and confidence are present. Some suppliers are even generous enough to extend maturity date in consideration with the present situation. Good relationship with the supplier is very important indeed in doing both local and international business.
The world has been put to a standstill since the COVID-19 pandemic started. Businesses came to a halt and millions of workers worldwide were facing uncertain future. I think idea #1 which is PROGRESSING TECHNOLOGICAL ADVANCEMENT can still be applied at this times. Given the crisis that we are into, businesses preferred to shift into a work from home set up. What used to be a far-shot scenario in getting the job done now seems to be a doable chore to workers.
More online facility has been the go-to to process payments, order food and just to get anything under the sun so as not to compromise oneself with this deadly virus. The internet has now become a utility and not just a luxury as it used to be viewed before.
With the technology now at our fingertips, it will be more helpful if businesses will invest more in the development of their system designed specifically to address concerns that can be done in the online facility.
The COVID-19 virus has affected not only the health sector but also the economic sector of every country worldwide. Somehow this health and economic disaster could have been avoided if our health department made early and necessary moves to contain the spread of the virus, but the failure to do so has made a great negative impact on our beloved country jeopardizing the businesses and th economy and more importantly the health of it’s citizens from the richest to the hungry poor.
“Businesses are connected through a world wide web of global supply chains, and the behavior of large companies impact those working at the bottom of supply chains” (Human Rights Watch, 2020).
Clearly, companies have to adapt to the changes and the situation to ensure its survivability. The ideas presented above are still useful, with the use of technology, any materials unavailable from one supplier can be replaced by contacting other suppliers easier than it used to be. We can also ued this technology to identify risks in running the business during the crisis, and to prioritize areas where to focus the resources of the business to generate income and ensure survivability. Businesses should also look at the value of products they are selling if it is relevant to the current needs of the economy or the buyers, this in turn will help evaluate if we need to purchase materials in producing these goods. Developing a good relationship with supplier is a must, having a supplier thatbyou can trust at these times is an assurance you are getting the goods with the same specs you ordered on time and at a fair price.
All of the ideas are applicable and necessary, the best option is for the business to become dynamic in these changing times. Incorporate these ideas in every problem the business faces but also make bear in mind that every problem is different from each other and needs a different approach. Use the appropriate technology to identify problems and create specific solutions for it.
COVID-19 has now become a global pandemic and a global concern. As many individuals see this as a health threat, businessmen and big companies see this as a business impacting concern. Since the viruses has spread rapidly not only in China but across the globe, companies have become alarmed and worried about their supply chain. I could now imagine the sleepless nights spent by upper management in strategizing on how to sustain the businesses with the limited resources, high risk of contamination and closing of certain trade routes. The ideas for supply and procurement mentioned above ideally are very appropriate to companies thriving globally in 2020. Unfortunately, the pandemic has made everything more complicated than it seems. Some of the ideas mentioned in the article could still be useful. Some of these are the Increase in Overall Market Volatility, Looking More into Value and Developing Relationships with Suppliers. As you can see, the only idea I haven’t mentioned is Progressing Technological Advancement. The reason why I see this impractical during this pandemic is due to limited financial resources. Global companies are considering a lot in terms of cost. Also, global supply chains have are geared towards maintaining good quality with lower costs at step in the chain. This is why there is significant importance in terms of geographies. For sure, they are thinking on how they can save even in little ways. Investment in advance technology may not be the appropriate solution as of this moment. Among the other three relevant ideas that I have mentioned, personally I think developing relationships with suppliers are very important. Global companies rely more on their supply chain efficiency. The supply chain starts from procurement to manufacturing and distribution of the finished product. More often than not, globally competing companies get raw materials from foreign countries to save cost yet maintain quality. I these trying times, having a good relationship with you suppliers can be of help. Why? Because it would be easier for you to negotiate in terms of lead time, alternatives, cost/prices and payment methods. This can also avoid fraud or contamination among raw materials or products. Especially if you are looking for alternative suppliers if your original supplier is in lock down. They may be able to give you trusted alternatives so that you can ensure your quality even with a new supplier.
For a business to deliver its obligation to its clients, it must have a properly functioning supply chain. Without an entire supply chain, a manufacturing business will starve for essential inputs into its production process.
So far, the global impacts on supply chains have resulted mostly from the problematic situation of China, and we can talk about those effects in two separate ways. First, it’s having an impact on the supply of inputs for many manufacturers and retailers all over the world, and that’s important because China is a huge source of components and finished goods. Thus, the ideas presented above can and will always be useful, primarily, Progressing Technological Advancement. The idea is that when the workforce decreases of a particular company due to the pandemic, it will not only affect its supply chain and procurement but the whole operation as well. Therefore, creating an opportunity to use the advancement of technology to continue the process, such as supply chain and procurement.
Second, the best option to tackle, is that the company should put resources in advancing their technology. As what we have seen in today’s situation, technology plays a vital role in times of crisis. One example of this is the implementation of the emerging of external platforms or online workforce and services that will enable businesses to engage workers globally and specialized service providers that will perform and deliver work or services remotely and beyond a digital platform.
With COVID-19 affecting business, can “ideas” presented in the article still useful? What would be the best option?, Well, the ideas in the article can be useful, it is because, maybe this man made phenomenon can be an advantage or has a disadvantage. For example, there are products and services that goes down, like oils (gasoline, crude oil, kerosene and maybe stock market ) due to COVID-19, so there is a possibility that it can be an advantage to your company some of the attributes brought by COVID-19. If not, I am confident that the phenomenon we experience right now will not last. It is imperative that there’s a big impact that shake the global economy that if cannot be dealt accordingly it will cripple the world economy. But for the mean time, it’s best to conduct study or analysis on how to adjust and align your present approach in the present scenario. As what everybody’s concern right now is to address on how to eliminate the pandemic cause by COVID-19. Countries affected by this disaster has design strategy, support each other, to address the issue and hopefully this will be achieve. Your best option is to have a contingency plan design to this kind of situation. It is necessary protect your employees, clients, stakeholders, stockholders of the company in order to survive. Design marketing programs in adherence to the Government and Environmental requirement. Follow policies crafted by National and International committees in order to gain respect on both on clients, employees and the government itself. Keep on going, think all those individual that leaning on your company. After this trials and obstacle it will back to normal. Love and passion is the key for further innovations in crafting your ideas which is in-line with current situation. Don’t be afraid to commit mistakes, sometimes your mistakes teach you how to make it right.
With COVID-19 affecting all businesses, can the “ideas” presented in the article still useful? What would be the best option?
The four ideas presented in the article above 1.Progressing technological advancement 2. Increase in overall market volatility 3. Looking more into value 4. Developing relationship between supplier are still relevant today even in times of crisis as these COVID-19. Though all businesses are greatly affected purchasing (procurement) and supply management are crucial for the effective and efficient operation of any firms. The function has evolved from being routine and mechanical to a function that can deliver true competitive advantage as to digital transformation. As mentioned in the article it is depend on the tools or the breeds you are going to adopt as to the usefulness or application in your areas. The trend toward increased globalization and outsourcing ,along with a focus on innovation and capability supply management, has led to an increased reliance on suppliers. That is why it is necessary to develop a trustful relationship between a firm and its suppliers. Where you can depend in times of normalcy or in crisis as these times.Though the market is volatile (The higher the market volatility the riskier), the price of a security increases because of maybe economic crisis, economic indicators,political developments ,volatility overseas, public relations and with the current situation of COVID-19 ,there is always a bright side of the coin. In times of crisis ,uncertainties and state of emergencies companies should be resilient. The business or the firm should maintain diversified portfolio. To consider diversification or invest in regular investment.And avoid jumping in or out of the market.
The heightened significance in practice has been parallel by an increasing attention on the value where saving is the primary goal, cost containment and reduction. There is a rapid rate of change,challenges, and exciting opportunities in purchasing and supply management but ideas still the same in good or bad times.
The global covid 19 outbreaks presents a far greater challenged to all kinds of business. The aforementioned ideas is still applicable and functional but the best option is the progressing technological advancement. We are now living in the digital era where almost everything is automation. Businesses can invest on a system that evaluates the dependability of various materials that can use to rank suppliers, a system that can handle complex data simulation on which business can reduce operational cost and at the same time achieving big savings. Indeed ,procurement is constantly evolving technological advancement since it’s a powerful solution that can easily adopt a changing market it also helps purchasing manager decide and gives endless opportunities with a little oversight and approval that can result to productivity improvements and valuable savings.
The current age scenario requires changes in strategies and approaches which is in accordance with upgrading of programs, systems, strategies and practices in-line with the modern world trends, if not, you will be left behind. The same thing in the emerging supply and purchasing ideas with global aprroach and adaptation with the present technology and modernization program all over the world. The ideas behind supply and puchasing is all about economy and profit in your business. Every company is failure when they have weak ideas regarding supply and purchasing approaches. Remember companies spend alot of money in investment to meet the demand of the stakeholders and customers. Which the company expects bigger return of investment. In this particular case, it is crucial and important how we choose and decide what approaches in procurement process is applicable in your business to compete in the global settings. It is a requirement to do research in terms of different types of supply and purchasing techniques and strategies in order to have a broad insight and can easily the right ideas in order to achieve effeciency and productivity without risking the quality of services and products produce by your company. Learn the basic is more important, meaning; ‘ right thing for right job”. To achieve your mission and vision will give life to your company and will help every stakeholders and stockholders to survive in the global business economy.
Padmini Ranganathan, global VP, risk and sustainability at SAP Ariba, Added: “Consumers will vote with thierndollars and because of this companies are levering their impact on issues such as climate impact, forced labour and impact on livelihoodand job opportunities as part of thier brand and promise.
” To be credible, the smart ones will shift from focusing just on cost saving and compliance to true value creation and avoid greenwashing. Squeezing suppliers oncost just doesn’t cut it anymore. Buyers and suppliers come together to create value for thier mutual customer, and where elsecan this happen but from the beginning of the procurement process when sellers come calling with their business card or buyers scan the globe for the best suppliers?”
Question: With COVID-19 affecting all businesses, can the “ideas” presented in the article still useful? What would be the best option?
Companies adapt different kind strategies with regards to purchasing their supply which they believed help their companies minimize cost, maximize quality, and to deliver products on time to their customers. Companies may differ from its circumstances that they have to properly scrutinize the better procurement strategy suited based on their needs since it has a vital role to stay on top and sustain itself in the competing markets.
The “ideas” presented in the article is indeed useful and for me, it is timely in the midst of the pandemic that we are experiencing at the moment. Technology specifically has a gigantic impact to all of us especially in business sectors, wherein exchange of information is not a barrier anymore because of technology. Companies can easily choose the best supplier by comparing their services with others though internet/digital gateways.
Covid-19 may change the face of the market; it would increase its volatility to cope up the crisis that every company is facing right now. This is a challenge that they have to manage on how they are going to handle the disruptions. This catastrophe will bring scarcity in one form or another to every company and thus what changes particularly they have to make on their procurement strategy.
Either a good value or cost of supply will become more important for every company. Depends on how it will improve their business in terms of productivity and effectiveness in delivering their products.
Developing relation between suppliers which is also necessary by working closely with them is helpful to ensure that they will deliver to you what you are requiring or expecting from them. Having good relationship with suppliers perhaps brings more aids to access reliable product deliveries.
Lastly, there will be more emerging ideas to help all business back on the lead. Setting aside conflicts and helping one another will be able to help us all kick-off gradually from this disaster.
The pandemic COVID-19 affected all over the world. Businesses and Corporations facing in serious situations. The supply of inputs of many manufacturers and retailers have been paralyze. Suspending their operations because they were run out of inputs and most countries borders were closed. In relation to the supply and purchasing article presented, for now its useless. The best option that the businesses should do is to discover or develop alternative sources, routes, inventory and cash reserves. Like for example, continuing business transaction thru online. Being prepared always, rather than competition might be an opportunity if this will happen again.