[Editor’s Note: Ardent Partners recently published its procurement-themed report, “Procurement 2021: Big Trends and Predictions”. Over the next few weeks, this site will feature articles highlighting the key discussion points from the report.]
While the procurement industry is consistently evolving and shifting, 2021 begins after a truly unprecedented year. In 2020, Chief Procurement Officers and their teams were forced to face massive disruptions, extreme threats, and entirely new challenges brought on by the COVID-19 pandemic. By and large, procurement leaders worked valiantly to ensure business continuity, build supply chain resilience, and prepare their enterprises for the next economic phase. Against this backdrop, procurement has never been more important to business operations and business results.
Uncertainty Remains a Major Force in 2021
Beyond disruption, supply chain risk, and sustainability, 2021 will pick up where 2020 left off and be another year of uncertainty. In life, in business, in politics, in public health, in international affairs — everything seems to be uncertain. There’s no getting away from it or around it.
Since the Coronavirus has impacted literally every facet of society, its continuing impact and all of the associated “unknowns” means that pervasive uncertainty will remain a major force in 2021. As the global death toll continues to rise at an advancing pace, the growing economic and emotional impact of COVID-19 on families, communities, businesses, and economies will broaden.
And, while early reports of the vaccine impact are promising, it remains unclear as to when enough vaccines will be distributed to make society safe. Additionally, new virus strains are emerging on a regular basis and the efficacy of the current vaccine to protect against these new strains is unknown.
Despite (or perhaps because of) all of the uncertainty, risk, and disruption (i.e., opportunity) in the business world, procurement’s momentum over the past decade has not been thwarted by the global pandemic. Instead, the Coronavirus has provided yet another example of how critical the procurement function is to many enterprises, particularly those with global supply chains. As business leaders, CPOs can take the lead within the enterprise to overcome or make the best of the risks, challenges, and disruptions that are occurring or approaching. Rather than fearing these unknowns, smart CPOs and procurement practitioners can and should embrace the business challenges and turn them into business value.
RELATED RESEARCH
Introducing The Procurement Trends & Predictions for 2021 (New Report)
Procurement 2021: A Few BIG Trends
The Key Themes for the Modern CPO’s Agenda (Disruption)
