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How is current crisis different from global crisis in 2009 for procurement?

What will it bring to the role of procurement now? Those who remember 2009 from the procurement perspective, it was a time of great expectations. Majority expected that procurement will play essential role in stabilizing companies through savings and strengthen its position and reputation. Procurement staff was expected to grow. Reality was opposite though, procurement budgets and staff were cut, because companies' managements found FTE savings to be quickest and safest.


How is today different? Why should we expect different scenario in coming months and years? We don't know for sure. Though I expect a major difference - companies will rethink global sourcing. Why? Because never before


  • have been borders closed so quickly

  • entire countries lost access to certain countries in a matter of days

  • felt countries so helpless when begging for critical supplies (which they lost capability to produce long ago)


Many experts kept finger raised for risks of global sourcing, but because such situation hasn't occured before, everybody "hoped" nothing happens this time. This thinking is gone. What might be a bottleneck? If we struggled for lack of talent months ago, the struggle will be even bigger now.

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