Navigating economic uncertainty: How procurement can help businesses become more resilient?

Pakistan is currently faced with a multifaceted crisis that is putting significant pressure on its economy. The country is experiencing an ongoing political crisis coupled with series of economic challenges that include a depreciating rupee, mounting inflation, devastating floods, shortage of energy, rising fuel prices, growing current account deficit, widening trade deficit, and a shortage of foreign currency reserves to name few. These challenges are making it extremely difficult for businesses in Pakistan to remain afloat, which is why many business owners and leaders are foreseeing that 2023 will be an extremely tough year for the country's economy. Considering this, they are calling on political parties to come together and agree on a long-term 'Charter of Economy' that should provide a clear economic direction for the country and help both businesses and the masses to understand where the country is heading economically.

To navigate this very complex economic situation and heightened political uncertainty, Pakistani businesses must begin to think and act both differently and creatively. It is crucial for them to start viewing procurement as more than just its traditional role and start utilizing it as a means of managing supply chain disruptions caused due to local and global factors. Procurement is a crucial function for businesses during turbulent economic times as it is responsible for managing the acquisition of goods and services for an organization. The procurement teams can also use a variety of non-conventional methods to address the challenges faced by businesses.

Integrating agility into procurement allows businesses to be more flexible and responsive to changing market conditions. Agile procurement involves using iterative and incremental processes to manage procurement activities, which can enable organizations to quickly adapt to changes in demand or supply. This can be especially valuable during economic crises when businesses may need to quickly adjust their procurement strategies to stay competitive. Agile procurement enables organizations to identify and mitigate risks in a more efficient way, which can prevent business disruptions and ensure a more stable income. Additionally, agile procurement can also help businesses to identify new opportunities and pivot their strategies as market conditions change.

Procurement analytics can be particularly useful for challenging economic times as it allows organizations to gain...

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