The world had come to a standstill after being hit by the pandemic. While many sectors had been severely affected due to the outbreak of COVID-19, outsourcing and its supply chains were one of the major fields that bore the brunt of the pandemic. As there was a restriction on the movement of people and goods could not be transported as easily as before, supply chains were almost coming to a halt. It was a constant challenge for the sourcing agency to manufacture goods and deliver the same.
When the situation became a tad bit better, the supply chain shocks were in need of resilience and ingenuity to improve social standing. Global supply chains had to function well enough to provide support to the commerce and community. This has paved the way for certain changes in the path of managing supplies. Post the pandemic, procurement companies and agents have grappled with the task of managing and sourcing materials correctly. The interconnected supply chains have also faced similar strain and stress. In the aftermath of the pandemic, sustainable sourcing has come on to the forefront and organizations aligned their priorities accordingly. In a sustainability program that is meaningful, one has to track how companies align their purchasing practices with corporate sustainability goals. It is due to the pandemic that people have finally realized the strong relationship between resilience and sustainability performance. As the economy is now thriving with a ‘build back greener’ perspective, sustainable supply chains are the only way to take the world of procurement back to its previous glory.
Short Term and Long Term Impacts of COVID-19
Outsourcing was sincerely affected due to COVID-19. There were both short term and long term impacts that came to the forefront of every sourcing agency. From supplier resilience to an instant increase in demand and a sharp fall in supply, the chain had taken a hit. Also, there was a noticeable change in the behavior of the supplier and the overall management. To overcome the short term impacts, many organizations have now resorted to supplier diversification and supplier engagement. Similarly, to survive in the long term, sustainability in the supply chain has become quite important. This is an indication of resilience increase and more priority is being given to sustainable and collaborative approaches in order to manage supplier relationships.
COVID-19 has shown that suppliers and buyers need to have a more cohesive relationship to thrive alongside one another in times of crisis. Without a collaborative approach, the condition of the supply chains and sourcing materials could not have been restored. It is only a matter of time before other external shocks are waiting right around the corner to disrupt the norms of the world. But if procurement companies adapt to sustainable supply chains, they will be in a better position to fight against the odds. Only sustainable solutions can give transparency to your business and ensure good performance, compliance and risk management systems