Odesma sought to examine the effects of Brexit on the Procurement function. In doing so, a report by the Chamber of Commerce was also commissioned to uncover the thoughts behind the leaving of the EU. Visit the previous article here for more info…
“The Greatest Fear is the Unknown” and as clearly described in the report, and to quote Donald Rumsfield, “there are known knowns, known unknowns and unknown unknowns”… which is an awful lot of uncertainty. And what incites the greatest fear in the economy? Uncertainty. Following the survey carried out by the Odesma team following the triggering of Article 50 and the report commissioned to the Chamber of Commerce, it seems like that is the overall feeling of you, the people within the procurement community- uncertainty and lack of clarity about the implications of a segregated Britain on your procurement teams.
The survey gathered an incredibly varied response across most of the questions and people seemed hesitant and unsure in their answers. Direct questions around predictions on the effect of Brexit on your team such as ‘Is there a need for skill change?’ and ‘do you predict a shift in the size of your team?’ resulted in almost exact 50/50 results, with >80% predicting no change in the size of Procurement teams at all. Which either means that we aren’t sure what to expect or we don’t expect much to change at all! Which contradicts the earlier question as to which functions would be affected by Brexit, to which almost 90% responded with Procurement being one of the options. So if we think that Brexit will have an affect on Procurement, maybe we’re just left in the dark as to how?
Has or will Brexit lead to a change in Procurement headcount requirements going forward?
- Will Increase Headcount 8.33% 8.33%
- No Change 87.50% 87.50%
- Will decrease headcount 4.17% 4.17%
So what sort of actions will procurement teams have to take once the effects of Brexit are upon us? The top results from the survey showed:
- Re-evaluate and realign the supplier base.
- Enhance the approach to risk management and contingency planning.
- Re-negotiate contracts with existing suppliers.
It seems that uncertainty has prevailed and Procurement functions feel they are left a bit in the dark. Not just by the government but also by their organisations. It is important for communication to stay open and strategies to be put in place around the above considerations. (Keep an eye out on the blog for articles on the above topics to help you get prepared…)