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.
Launch aggressive short-termin-year cost reduction and working capital monitoring to mitigate EBIDTA short-falls
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 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