Why Procurement is stronger than ever since Covid –
And what it means for tender writers
Procurement has developed significantly since Covid, especially in the eyes of their stakeholders, as well as the C-suite – procurement thought leader and consultant, Jonathan Dutton FCIPS, from JD Consultancy, explains exactly how, and what this means for APMP ANZ members…
Procurement had a good Covid - surprisingly, perhaps, given all the headlines at the time over unexpected shortages and supply dramas. And the toilet rolls, of course.
Like everyone else in offices, when Covid hit, procurement people were instantly working from home – balancing laptops on old books atop the dining room table while fending the kids off. Making the paperless office a reality for a department built upon paper process.
Yet also working assiduously to build and maintain instant relationships:
with direct suppliers to secure critical supply lines
with all-new vendors to source vital Personal Protection Equipment (PPE) supplies
and with indirect suppliers to suspend volume commitments during shutdowns.
And it, pretty much, all worked. Mostly through teamwork. The evident goodwill in the business world at the time helped everyone ‘make it work.’
Early in the pandemic the Procurement and Supply Australasia (PASA) Connect Roundtable of Chief Procurement Officers was meeting not quarterly – but every Friday morning. All sharing instant benchmarking of best practice and instant solutions to common problems. After a while, we invited along some senior stakeholders to discuss their experiences.
“How has it been for you?” I asked one guy, fearful of his response – procurement has always had its critics. “It has been really good” he replied, astonishingly.
“What have procurement done that is so good,” I enquired? “Well,” he said, “they’ve shown a sense of urgency – they’ve never done that before.” He wasn’t trying to be funny. It was a genuine compliment. He added that procurement had been a ‘pathfinder’ for him, through the purchase process and red tape, through the compliance demands, the PPE needs, and a disrupted marketplace too.
Some months later, he returned. “Back to normal” he reported, “Nine months for a sourcing exercise! Absolutely not the three-day service we got during Covid.”
Nonetheless, procurement made many friends during the pandemic by:
Becoming instantly aligned with true business needs
Cutting the process to essential work only
Tuning into deadlines and required service standards
Working to build relationships – not assuming them.
Immediately after the pandemic, Procurement faced a new challenge – how not to waste the crisis? How to build upon their success for lasting credit and buy-in? For delivering more business value as the pandemic proved a catalyst for real changes that were set to happen anyway, it seems.
The immediate supply priorities after the pandemic, in 2022-2024, suddenly led to procurement’s busiest ever year, for five principal reasons, as The Hackett Group’s research (a global procurement and finance consultancy) pointed to an 11% year-on-year workload growth pattern for busy procurement teams, yet only an average 3% Full-Time Equivalent (FTE) productivity growth pattern:
The skills shortage – both in procurement teams and within supplier’s teams.
Rebalancing risk of non-supply from overseas, with historical low-cost sourcing solutions.
Contract rollovers during Covid needed fixing – and often taken back to market.
Volume requirements shifted permanently during Covid – needing new deals.
New Environmental, Social and Governance (ESG) demands reframing every purchase decision and adding complexity.
These pressures coincided with five new trends on the supply side that Procurement was forced to embrace quickly and still preoccupy them today:
1. Digital Transformation and Data-Driven Procurement
The pandemic accelerated the adoption of digital tools in procurement processes – as the ‘paperless’ office became a reality. From virtual negotiations to e-tender platforms, digital transformation tools are central to procurement. For tender writers, this means mastering new systems, new platforms for bidding, and including strong data analytics in proposals that resonate with data-savvy evaluators and make evaluation and comparisons easier for buyers.
2. Focus on Supply Chain Resilience
The pandemic exposed vulnerabilities in global supply chains, leading to a heightened focus on supply resilience and risk management in procurement strategies. This shift has created an opportunity for tender writers and bid professionals to emphasise contingency planning, business continuity plans and more diversified supplier networks. Demonstrating an understanding of supply chain agility can give bids a competitive edge.
3. ESG as a Priority
ESG and sustainability is no longer a niche consideration—it's a core requirement in procurement. Governments and organisations have placed sustainability at the heart of their procurement policies, aligning with post-Covid recovery efforts that prioritise green initiatives. Tender writers must now integrate sustainability metrics, highlight environmentally conscious solutions, and showcase alignment with clients' sustainability goals and priorities in every tender response. They will be part of the evaluation criteria.
4. Collaborative Contracting Models
The rise of more collaborative contracting models for large projects and a growing emphasis on partnership and shared risk between clients and suppliers. Tender writers need to understand these emerging frameworks, as they often form the foundation of post-Covid large-scale procurement contracts. There are growing options for different models in large capital contracts. Proposals will often have to embrace a commitment to collaboration, transparency, and long-term value creation, as well as innovative approaches like pain-share/gain-share mechanisms.
5. Evolving Evaluation Criteria
Post-Covid, procurement teams have shifted their evaluation criteria to prioritise flexibility, innovation, and adaptability. Traditional price-driven assessments are increasingly supplemented with qualitative measures such as human rights efforts, carbon emissions commitments, indigenous policy goals, supplier diversity and clear alignment with compliance, policy, and strategic objectives. Tender writers should adapt by crafting bids that go beyond simple compliance, highlighting differentiated value propositions, and addressing wider strategic goals.
Opportunities and Challenges Ahead
The post-Covid landscape is both challenging and exciting for tender writers. While a growing emphasis on sustainability, collaboration, and innovation adds complexity, it also creates opportunities for tender writers to innovate and influence outcomes.
Staying ahead of procurement trends, upskilling in digital tools and collaborative frameworks, and aligning with new evaluation criteria are now critical for success.
As procurement continues to evolve, so quickly, those who adapt to these changes best will thrive in a dynamic and demanding discipline. For tender writers, the key is to embrace transformation and position themselves as indispensable contributors to their organisations’ and clients’ success.
Online Foundation certification workshop and exam
APMP ANZ is pleased to offer* its members a discounted ticket price to attend online, the “Managing the Buyer” program facilitated by Jonathan Dutton (JD) from JDC. Based upon JD’s successful keynote speech at the 2024 APMP ANZ conference in Brisbane, learn how procurement professionals think these days.
For more information click here. It offers 8 CPD points.
*This is an APMP ANZ Paid Partnership
Written by © JD Consultancy P/L www.jdconsultancy.com.au
– Licensed in perpetuity to APMP
