Procurement in a Price Volatile World: Herding Cats, Juggling Chainsaws & Still Making Budget

Let’s face it! Being in procurement today feels a lot like trying to book plane tickets under dynamic pricing. Prices change every 5 minutes, supply chains have the reliability of dial-up internet and your suppliers? Well, sometimes they go quiet like your boss when you ask about that raise.

Welcome to procurement in the age of price volatility. But don’t worry, while the world may be unpredictable, your strategy doesn’t have to be. Here’s how to stay sane, strategic and maybe even a little smug while navigating the chaos.

1. Strategic Procurement: Or, How Not to Panic-Buy Like It’s 2020

We all remember that time people hoarded toilet paper like it was gold. In procurement, panic buying during price spikes has the same chaotic energy and the same long-term regret.

Here’s your smarter game plan:

• Diversify or Die: Don’t put all your eggs in one supplier basket. Especially if that basket is in a politically unstable region or has lead times longer than a group chat deciding where to eat.

• Forecast Like a Fortune Teller: Invest in demand planning tools. Sure, they’re not magic, but they’re better than flipping a coin.

• Flexible Contracts = Fewer Grey Hairs: Lock in prices when you can, but keep some wiggle room. You want your contracts to flex not snap.

2. Supplier Relationships: Because Supplier Loyalty > Situationships

Good suppliers are like good friends reliable, honest, and hopefully not trying to sneak in hidden fees. So, treat them like partners, not vending machines.

Golden rules of the game:

• Talk it Out: If you're only calling your supplier when something's on fire, don’t be surprised when they stop answering. Regular check-ins build trust and reduce panic.

• Celebrate the Wins: Did they deliver on time? Send a thank-you. Did they save your bacon on a tight deadline? Maybe a little shoutout on LinkedIn. Suppliers have feelings too.

• Don’t Be That Buyer: You know the one always squeezing prices, ghosting during negotiations and blaming suppliers for everything short of bad weather. Be firm but fair and you’ll build partnerships that actually last.

3. Tracking Spend & Performance: Big Brother Style

If you’re not tracking supplier spend and performance, you’re basically running procurement with a blindfold on and hoping for the best. Spoiler alert: it won’t end well.

Tools of the trade:

• Spend Analysis Tools: These nifty platforms tell you who’s overcharging, who’s underperforming, and where your budget is disappearing faster than snacks in the breakroom.

• Supplier Scorecards: Because everyone deserves to know how they’re doing and because “vibes” aren’t a KPI.

• Digital Contracts: Paper contracts are so 1990. Go digital. It’s faster, cleaner and you won’t have to dig through filing cabinets like a detective in a bad crime show.

• ERP Integration: All your systems talking to each other? That’s not just efficient, it’s basically the digital equivalent of a rom-com montage.

Final Thoughts: Procurement Isn’t Just a Back-Office Function, It’s the Backbone of Business

Yes, procurement can feel like a circus act; juggling prices, contracts, relationships and rogue spenders all at once. But when done right, it becomes a serious competitive advantage. You’re not just buying stuff. You’re shaping resilience, driving innovation and saving the day - again and again.

So, to all you Procurement superheroes out there—rock that cape like a legend as long as it’s ethically sourced, comes with a multi-year framework agreement, scored highest on the weighted RFP matrix, delivered on Incoterms DDP and yes- on glorious, glorious 90-day payment terms. Bonus points if it came with a free coffee mug (because let’s be honest; that’s the real victory).