What Is Virtual Procurement - 2020?
This article was originally published in 2018 and has been updated for 2020 and the new realities businesses must face and the evolution of “Virtual” Procurement.”
Any of this sound familiar?
“With the pandemic, our team is working virtually, focused on helping our customers, trying to generate revenue while struggling to cut costs.”
“Our contracts were negotiated pre-Covid-19. We know our business has changed dramatically and our contracts need to be updated but we are too busy focusing on driving revenue.”
“We are too small and can’t afford to hire a full-time procurement person. We are too busy to focus on procurement.”
“We hope for good prices, but we are forced to just accept what suppliers offer. We are leaving hard earned money on the table.”
“Contracts are stored in someone’s drawer or lost, never to be seen again. Contracts often expire leaving us scrambling.”
If any of these statements resonate with you, please keep reading.
Procurement in Canada - Circa 2000
In Canada, many large corporations realized in the early 2000’s, that they needed to do more to control their costs. Many began looking harder at their expenses, how they were buying, often tactically without leveraging their full procurement power; and began centralizing the Procurement function rather than leave it to each individual department to buy on their own. The value of Procurement was just starting to be understood.
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