If COVID-19 has disrupted your business, or you're doing better than ever, NOW is the time to revisit your supply chain.
Today’s post is by Dave Wenig, Senior Vice President of Sales and Services at SafeSourcing.
Many companies have had to make significant changes as a result of the COVID-19 pandemic. The reality is in many cases, businesses have faced the reality that it will be a long time before they are able to get back to where they were at the end of 2019. Whether your company relies on a global or domestic supply chain, it is very likely that some of the vendors that you rely on have faced challenges.
Now more than ever, it is important to revisit your supply chain and be certain that you will have the supplies you need to operate under your new conditions. As part of that effort, it is time to consider whether your previous agreements are still appropriate. For example, you might find that you only expect to do a fraction of the business that you used to. That will mean that you might not be able to meet your previously agreed volume commitments with your vendors. Conversely, you might find that your business now has need for in-demand supply items that you didn’t need before. Many are also under increased pressure to reduce costs as well.
Regardless of your specific situation, the reality is that now is the time to fully assess your needs and to negotiate all aspects of your supply chain which may include renegotiating existing agreements early in light of the new realities.
Whether or not you are currently having challenges with your existing supply chain, this exercise is valuable. In recent online procurement events for customers we have found that many vendors are eager to earn new business and will happily rise to the occasion to be a primary or secondary source of supply. In uncertain times, having your pick between sources of supply might just make the difference in the event of a supply chain interruption caused by COVID-19.
At SafeSourcing, we typically tout the cost savings aspects of our eProcurement services. In this case, our customers have the added benefit of attaining both the cost savings and the added security that comes from ensuring your supply chain is strong.
Stay safe and don’t be shy if you need assistance. We’re all in this together. If you would like more information on how SafeSourcing can help you, please contact a SafeSourcing Customer Service representative. We have an entire team ready to assist you today.