Post Covid-19 Transformation of Procurement Strategies in Small and Medium Enterprises

Abstract

The recent global disruptions, particularly those experienced during and after the COVID-19 pandemic, have significantly underscored the vulnerabilities within traditional supply chain models for small and medium enterprises (SMEs). This has catalyzed a notable transformation in their procurement strategies, compelling many to explore and adopt modern innovations to build more resilient and efficient operations. Key areas of focus in this evolution include enhancing real-time visibility across the supply chain, improving the accuracy of demand forecasting, and establishing more robust methods for evaluating and collaborating with suppliers. The integration of advanced technologies is playing a crucial role in enabling these shifts, allowing SMEs to critically address long-standing operational inefficiencies and navigate the complexities of the evolving global landscape. A critical aspect of the evolving procurement strategies in small and medium enterprises (SMEs) post-COVID-19 is the increasing emphasis on supplier diversification and the application of Total Cost of Ownership (TCO) analysis. These efforts are crucial for reducing reliance on single or monopolistic vendors, aiming to achieve greater cost efficiency and build more robust supply chains capable of withstanding disruptions. The strategic adaptations in procurement strategies adopted by SMEs in response to the challenges of the post-COVID-19 era are demonstrably leading to enhanced operational efficiency, significant reductions in wastage, and improved profitability. These positive outcomes underscore the potential for substantial growth and increased customer satisfaction for businesses that proactively address supply chain vulnerabilities