Supply Flexibility During Times of Crisis: Resilience through Digitalisation

In recent years, geopolitical tensions, logistics disruptions, exchange rate volatility, and new regulations have emerged one after another. The only way to remain resilient in such an environment is to deliberately invest in supply flexibility. Flexibility is far more than maintaining a list of alternative suppliers — the real strength lies in creating a digital backbone that captures requests in real time, evaluates supplier performance, and monitors contractual commitments.

PwC’s 2024 Global Digital Procurement Survey also supports this trend: half of the companies surveyed plan to invest in contract lifecycle management (CLM) within the next three years, expecting benefits such as time savings, cost reduction, and improved compliance.

In this content, Promena outlines the most common mistakes made during times of crisis and offers practical solutions. We also share how companies can maintain uninterrupted procurement operations, even under challenging conditions, through digital supply management tools.

Three components of flexibility in a crisis: visibility, speed, compliance

The steps to follow during a crisis are straightforward: understand the situation, determine the right action, and implement it without delay. Flexibility can therefore be summarised under three pillars: visibility, speed, and compliance. When these elements are balanced, operations continue without interruption, recovery is faster, and costs remain manageable.

1. Visibility

When all data is consolidated in one place, the full picture becomes clear. Stock levels, open orders, critical suppliers, and contract terms can be viewed on a single screen, making it easier to answer the question, “Where are we falling behind?” Delivery delays are identified early, supplier performance is monitored consistently, and external inputs — such as exchange rates, logistics routes, or regulatory changes — are integrated into daily operations. As visibility increases, foresight also improves; even small warning signs trigger timely action before a crisis deepens.

2. Speed

When the request–approval–quote–order workflow is streamlined, processes that formerly took days can be completed within hours. Pre-defined templates simplify quote collection, while multi-round negotiations progress within a structured and transparent framework. Speed is not only about “acting fast”; it means having the right information at the right moment and eliminating unnecessary delays.

Compliance (and sustainability!)

A crisis is not a reason to compromise on rules and standards. When contractual commitments are monitored systematically, unexpected issues decrease. When suppliers’ ethical and environmental obligations are kept up to date, the audit trail becomes stronger and reporting becomes more reliable. As supply-related emissions data — such as Scope 3 — becomes more standardised, risks reduce and long-term decarbonisation pathways become clearer.

Recent analyses by KPMG highlight the same trend: heading into 2025, supply chain leaders are prioritising detailed cost tracking, systematic risk management, and especially increasing transparency around Scope 3 emissions. At CEO level, one of the biggest challenges to achieving net-zero targets is the complexity of decarbonising the supply chain. This reinforces why verifiable data and deeper supplier collaboration across the entire value chain are now strategic necessities rather than optional enhancements.

Common mistakes in crisis management and their solutions

Below is a summary of the most common mistakes made by procurement teams during periods of crisis. Each item is addressed through three practical questions: “What is happening?” highlights the problem, “Why is it happening?” points to the root cause, and “How can this be fixed?” offers an immediate and actionable solution. The aim is not to design complex workflows but to provide simple steps that can be applied individually whenever needed.

1. Focusing on files rather than systems

What is happening? - Information and reports are scattered across emails and spreadsheets, making it unclear which version is current. Different departments refer to the same issue using different numbers; this delays decisions and undermines trust.
Why is this happening? - There is a tendency to “solve it quickly,” so temporary files replace a centralised system. Authority and responsibility are not clearly defined.
How can this be fixed? - Establish a platform that consolidates stock levels, open orders, critical suppliers, and contract calendars on a single screen. Fields such as product code, supplier name/ID and delivery status become standardised. Everyone views the same data, and questions like “Who updated what and when?” are immediately clarified.

2. Relying on a single source

What is happening? - The idea of “we’ve worked with this supplier for years” becomes meaningless in a crisis. Capacity shortages, quality issues or route disruptions can collapse the entire plan. Costs also rise when there is no competitive environment.
Why is this happening? - Existing relationships feel safe, so searching for alternatives is postponed. Processes such as onboarding, data entry, and certification are seen as burdensome.
How can this be fixed? - Identify a pool of backup suppliers for critical items. Clarify technical specifications. Use proposal templates to speed up transitions. When price, delivery, and quality conditions are documented, it becomes clear who can be engaged — and under what terms — during a crisis.

3. Delaying templates

What is happening? - Contract and proposal documents differ from person to person; reminders are missed and approval cycles take longer. When the team changes, information loss increases.
Why is this happening? - Each new purchase is treated as a one-off case, so templates are not used.
How can this be fixed? - Prepare short templates with variable fields for the most frequently used contract or proposal types. Mandatory clauses (e.g., guaranteed stock, substitute supply, price adjustment formulas, force majeure) remain fixed, while product or service fields can be customised. Add automated reminders and approval flows to ensure consistency.

4. Leaving sustainability to the last minute

What is happening? - Scope 3 data is incomplete when reporting time arrives; certificates expire, and audit quality remains weak.
Why is this happening? - Operational priorities take precedence, and sustainability is treated as a separate side project.
How can this be fixed? - Integrate ESG requirements into supplier registration and evaluation. Update certificates, policies, and measurement outputs regularly. Use simple checklists to standardise formats, making reporting and auditing easier and more reliable.

5. Not establishing an early warning mechanism

What is happening? - Problems are detected only after their impact grows — longer delivery times, reduced capacity, and rising quality issues.
Why is this happening? - There is no agreement on common indicators, and different departments monitor different metrics.
How can this be fixed? - Define a simple set of 6–8 early-warning indicators (e.g., on-time delivery, delivery time deviation, quality errors, pending orders, critical stock levels, rejected quote rate). Assign thresholds, responsible roles, and first-step actions for each indicator. This shortens the warning-to-action cycle significantly.

6. Leaving roles and responsibilities undefined

What is happening? - Questions such as “Who decides what?” remain unanswered across request, approval, quotation, contract, and order steps. Waiting times increase, and compliance weakens.
Why is this happening? - The process diagram is outdated; even when the team grows, the old division of labour remains.
How can this be fixed? - Create a clear role–responsibility matrix. Document the tasks and deadlines for each stage. Define exception scenarios in advance to prevent confusion during crisis moments.

7. Not creating a data dictionary

What is happening? - The same product appears with multiple codes; supplier names are recorded with inconsistent spellings. Consolidation becomes difficult, and comparisons become misleading.
Why is this happening? - Definitions vary across teams, and no central standard has been established.
How can this be fixed? - Prepare a data dictionary to standardise fields such as product code, supplier name, currency, delivery term, and contract status. Add explanations for each field. Validation rules increase consistency and ensure reports are produced using a common language.

8. Skipping training and change management

What is happening? - New workflows and dashboards are introduced, but usage remains low and expected benefits are not realised.
Why is this happening? - A “set it and forget it” mindset persists; role-based training and feedback loops are not planned.
How can this be fixed? - Create a concise, role-focused training plan. Implement a feedback and improvement phase for the first 60–90 days. As small wins become visible, adoption and usage levels rise naturally.

Now is the right time to invest in a digital supply management platform to avoid repeating these mistakes and to ensure smooth, well-informed decision-making during times of crisis. Don’t wait—leave it to the experts and partner with Promena.

Complete the request form to schedule a short exploratory meeting with our sales consultants. Together, we can identify gaps in speed, visibility, and compliance within your current processes and develop a modular roadmap to strengthen your supply operations.