Procurement and Cost Management Post Corona Virus

Procurement and Cost Management Post Corona Virus

Procurement and Cost Management Post Corona Virus
 Procurement and Cost Management Post Corona Virus

Cost Management through Procurement will be more critical in this economy than ever.  Whether a company is large, medium or small, as businesses start crawling their way back to a challenging economy, one of their main focuses will be on managing their cost.   We are already seeing some companies starting to reach out to their suppliers requesting large discounts and cost cuts across the board. Unfortunately, this will in turn, create further distress, bankruptcies and financial struggles to companies who are trying to survive.
I admit. There are no easy solutions here. Companies will look for cost savings opportunities and suppliers will look for revenue avenues. Both will be critical to managing their businesses through a challenging economy. One thing is for sure though! Not every supplier can sustain the major discounts that companies will and are asking for. Some suppliers may have very small margins. Others may have difficulty securing their supply chain and turnaround times to secure products and services at past rates. So, if you are looking to ask for a certain percentage across the board to all your suppliers, think again, and consider what that request will do to your supplier(s). Rather, find ways to engage and collaborate with your suppliers to identify the best way to keep you both in a reasonably manageable situation without jeopardizing and risking either of your businesses.
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If your company has not had a strong procurement arm, now is the time to think about it.   While we are still battling the health crisis and businesses are still in a slow and downtime mode, now is the time to design and develop strategies for a sustainable procurement organization with the right processes, policies, teams and systems. Of course, this should not stop you from focusing on the short term strategy by identifying and pursuing low hanging fruits for cost savings. 

Let’s be clear, procurement is not simply about cost cutting. Sourcing and procurement are about bringing value to an organization through its supply chain. It is about creating long lasting relationships and quality services through its suppliers. It is about managing your company’s risk. Now is the time for your company to ask the question. What is my procurement strategy? What actions do I need to take now and in the long-term to ensure my ability to survive while minimizing risk and strengthening my long-term relationship with my suppliers. 
Finally, now is the time to ask yourself, what is your strategy in talent management. Procurement has always struggled in sustaining and growing talent. As an example, it is no surprise that subject matter expertise in select Sourcing categories are often rare and difficult to find. When the economy is back, demand for Sourcing and Procurement skills and talent will undoubtedly hike.

Time to focus on building a strong procurement organization. The maturity of your procurement organization is and will continue to be one of the most critical aspects of managing your company’s business in a era challenged with crisis and financial difficulties.  Marie Meliksetian is recognized for her commitment to helping leaders and businesses in their growth, Sourcing and Procurement operations and Transformation needs. Her years of experience and wealth of knowledge are sought after for successful results. Visit Reliance Solution Services, LLC for additional information.
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                                           Marie Meliksetian
Chief Executive Officer CEO | Procurement Business Process Outsourcing | BPO | Procurement Transformation | Board | NED 
Chief Executive Officer, CEO, Chief Operations Officer, COO, experienced in leading International operation with proven success in growing businesses, managing turnarounds, transformations across multiple industries, countries. Extensive experience in business process outsourcing | BPO | .  Proven success in strategic planning, operations, global sourcing, procurement, organizational management, technology. Data and Cyber Security business acumen. Board member.  Multi lingual. Fluent in English, French, Arabic, Armenian.

My value summary follows:
•Grew Client base by 5X.  Turned around troubled businesses  
•Lead strategic plans supporting EBIT growth >10% 
•Reduced underperforming services operational cost. Increased productivity by 30% - 50%

•Led growth of Procurement BPO $190M 
•Built Deployed enhanced sales, solution, operation 
•Negotiated multi million dollar contracts globally $20 to $85M increasing sales 25% to 100%
•Led Billion $ Global Sourcing operations. Entered, expanded in new global markets 
•Developed, deployed BPO technology based strategies •Led Billion $ Global Procurement transformation

•Acquired Million $ companies. Technology, Software, Financial | $20M to $100M 
•Led Transition, change management, portfolio accounts

•Served as CEO, President, Executive Director 
•Serving Non-profit, Advisory Boards 
•Chaired Client Governance boards
•Transformation and Business Growth 
•P&L. Customer Engagement 
•Sales. Solution. Operation 
•Cost. Quality. Performance Improvement 
•Leadership. Organizational Management 
•International expansion. Emerging markets 
•Startup •Business turnaround 
•Business Outsourcing 
•Business Technology 
•Product Management 
•Governance. Board member 
•Global Strategic Sourcing.  Procurement 
•Problem solving 
•Change Management 
•Team Management 
•Process. Analytics

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