Even though the COVID-19 crisis has left its mark in many ways, quite a few companies have weathered the pandemic quite well thanks to their versatility, agility, and responsible corporate culture and policies.
The fact is, in today’s world, it’s becoming increasingly difficult to remain competitive against large corporations. On the other hand, economic change also brings new opportunities and potential for optimization.
These must be identified and “tackled,” because there’s a reason for the saying: “If you don’t move with the times, you’ll be left behind.” And that happens faster than you might think, because the competition isn’t standing still either.
To ensure a forward-looking corporate strategy and leadership, the entire supply chain also plays a crucial role. The mere verification of compliance with minimum social and environmental standards will, as a result of the recently passed Supply Chain Act, lead to additional obligations for companies in the future.
After all, the law has been passed, and ensuring compliance with corporate due diligence obligations will present the industry with major implementation challenges next year and beyond. And while some fear major disadvantages, others see this as an opportunity to remain competitive, build crisis-resilient supply chains, or even position their companies or brands more clearly.
Procurement will also become a major challenge. Supply chain disruptions, rising freight costs, and raw material shortages will persist in 2022 and, without adequate preparation, will pose a threat to companies across various industries.
Sustainability: After conducting an analysis of sustainability aspects related to the value chain, many opportunities could arise for companies that represent attractive competitive advantages. Risks—including those arising from procurement disruptions, environmental damage, and damage to corporate reputation—can thus be effectively managed or minimized.
But brand enhancement and a higher return on investment are also measurable benefits of such measures in this area. Furthermore, this also revitalizes the internal value of sustainability within the company, as motivated, innovative, productive, and long-term employees can only be attracted through a corresponding sense of identification with the product and the company.
Digitalization: The primary argument in favor of digitalization in procurement for companies is the goal of cost savings across the entire value chain. Here, too, the analytical question arises as to whether existing processes should be retained or thoroughly reevaluated in order to explore new approaches. Automation, in turn, enables standardized processes to achieve significant time savings in procurement.
Whether it’s e-catalogs in operational procurement or automated contract management in strategic procurement—automated processes are becoming increasingly important in modern companies. However, even with well-functioning digitalization and automation, one thing above all must not be overlooked: the human factor.
Whether through their own efforts or by drawing on external expertise or innovation partners, building a more resilient and sustainable value chain, as well as advancing digitization and automation in procurement and logistics, are the challenges that small and medium-sized enterprises must address in 2022.
After all, if not the SME sector—as the driver of innovation and technology in the German economy—who else could better leverage its strengths to position itself for the future and perhaps even emerge stronger from the COVID-19 crisis?
I wish you a dynamic and energetic 2022. Let’s tackle these challenges together.
