CPOs Must Rise to the COVID-19 Challenge Through Recovery and Beyond

In the midst of a crisis, it's easy to stop innovation and slow cash burn. But as a business continues to operate, investments in growth and customer experience are going to be necessary.  CPOs have their hands on the levers that can make or break a recovery on the road to transformation.  

The AlixPartners Proprietary REASSESS Model

Our five-phase process to help procurement leaders manage through crisis: immediately cut costs, secure supply, and reduce risk.
Reduce expenditure

Launch aggressive short-term in-year cost reduction and working capital monitoring to mitigate EBIDTA short-falls

Analyze
Identify critical parts/services with potential to disrupt business – assume most suppliers will face financial difficulty, supply disruption, or service level drop
Strategize & socialize
  • Prioritize key vendors to engage based on business impact and enterprise risk
  • Determine immediate actions for priority vendors providing business critical services or high demand products
Mitigate
  • Mitigate go-forward risks through cross-functional ‘war rooms’ and vendor engagement 
  • Launch strategic sourcing to lower indirect spend and COGS costs long term
Stabilize and sustain

Adjust go-forward procurement operating model to tackle the challenges and opportunities presented by COVID-19

WE ARE HERE TO HELP

Contact our sourcing and procurement transformation team for more information about REASSESS and how we help businesses thrive and transform, from crisis and beyond.