Conversations around recruitment freezes and redundancies are happening across industries right now. Despite months of decline, job ads have continued to fall in October. CEOs expect continued economic uncertainty for at least the next 6 to 12 months, with hiring freezes and workforce resizing escalating.
So, when many of us are being asked to deliver more with less, what’s the solution? Getting your priorities right.
When it comes to your business’s procurement capability, it’s time to rethink how you can operate productively to meet continued demands despite dwindling resources.
Here’s a simple way to approach the process strategically:
Prioritise First
What is going to add value to your organisation right now? This will look different for every business – it may be strategic sourcing, supply chain optimisation, contract negotiations and improvement plans, etc.
We’d start by mapping out the key functions within your business. Are they strategic, value-generating, risk and governance-related or operational? By focusing on key areas with the most significant bottom-line impact, you’ll move the dial where it counts. Then, you can assess the next steps:
Stop
What tasks, projects, or contracts are just not adding value? Identifying areas where value can be unlocked quickly is well worth the time. Consider low-value procurement – a ‘better the devil you know’ mentality can mean money is left on the table. Contract optimisation alone could offer significant saving opportunities for your organisation.
Assess
Now is the time to prioritise maximising the time versus value equation and focus efforts on actioning projects that can be implemented quickly and equate to bottom-line savings and value generation. More complex, long-term projects can be delayed until there’s a return in economic certainty.
Redesign or Automate
Are there opportunities to redesign and automate current systems and processes? Most businesses have cumbersome legacy systems and processes that cost more and deliver less. Automation can elevate the functionality of your teams, freeing up valuable resources that can be redirected towards high-value activities.
Divert
Can you outsource to a third party? Engaging the support of specific specialist providers is often more cost-effective than in-house delivery. With their finger on the pulse, procurement specialists can offer your organisation practical insights to drive business efficiencies and cost optimisation.
Need support to prioritise quick wins and strategic opportunities? Contact August Consulting via our website or LinkedIn. Whether you need advisory support or full-scope end-to-end procurement services, our Procurement as a Service (PaaS) offering can be tailored to your organisation’s needs to combat the challenges of the current economic climate.
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