I received a note from a CPO last week who had recently moved to the Gulf region but within a matter of weeks had found themselves in the middle of a warzone – naturally they felt exposed and more than a little concerned.
Given the experiences we’ve all been through over the past few years, the sheer scale and speed of disruptive events should no longer surprise – but it never ceases to amaze me just how quickly things can change.
From attending the European Forum in Berlin and discussing the challenges and opportunities of artificial intelligence one day, to hosting meetings to help CPOs mitigate the effects of yet another war the next.
As Etihad Airways CPO Cassie Mackie, who attended the forum, said in response to last week’s CPO Crunch on LinkedIn: “It is incredibly grounding when a change in perspective happens so abruptly.
“One moment we are navigating the complexities of global procuretech in Berlin, and the next, I am reminded that the most critical asset in any supply chain isn’t an algorithm – it’s the person standing next to me and the agility of teams who pivot not because a programme told them to, but because they care and they know their role.”
We hosted two reactive calls for CPOs in the Procurement Leaders membership last week, and, not surprisingly, the number one priority of those who attended was the safety of their teams, stakeholders and partners.
Once satisfied with the human impact and team safety, CPOs moved on to focus their efforts on operations, including diversifying logistics strategies to bypass the Strait of Hormuz and other supply chain chokepoints, the building of safety stock in critical categories, quantifying the impact of incremental increases in the price of oil on company margin, to gaining greater visibility of sub-tier supplier risks.
The resilience capabilities of most of our members have developed significantly in recent years, meaning CPOs were largely in execution mode following the outbreak of this latest war.
But the biggest questions – and the unknowns that can erode those resilience capabilities – are those of time and scope. How long will this war last, and how wide will it spread?
These questions will determine how well we are able to cope operationally and what the ultimate human and financial costs might turn out to be.
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