Procurement Directors: The Most Expensive Goods are Those Not Delivered

Nurturing business partnerships, which also means maintaining quality communication at a high level, brings many benefits in good times and bad, is the conclusion of the round table Time of Risks and Opportunities held on Thursday at the 16th Procurement Conference at the Antunović Hotel in Zagreb.

Darko Šepić, Procurement Director at Adris Group, emphasized that the company began the procurement transformation process before the crisis. – We will survive easier than some who did not equip themselves in time. The resources we have now allow us to adequately plan and strategize to remedy almost any situation – said Šepić. He noted that it is now more important than ever what kind of relationship you have developed with suppliers. At this moment, he is being called by fifty different clients seeking services, and if you haven’t had a phone conversation for three years, when you suddenly call him, he will wonder: ‘Who are you?’. These are some of the downsides of digitalization that has moved communication online.

– I love talking to people, the emotional component is what makes the difference in business and will always be important – agreed Katarina Špiljak, Supply Chain Director at Kamgrad. Since construction sites are significantly burdened by the consequences of the coronavirus, as during self-isolation, healthy workers must stay at home, and prices and shortages of materials further complicate processes. Kamgrad is working on an average of 30 large projects, it is essential for them to secure the necessary materials and fight against high prices. However, even more expensive than inflation is the goods that are not delivered.

– The goods that do not appear on the construction site are the most expensive for us. If you have 50 rebar workers waiting and nothing to do, there is no more expensive goods – said Špiljak. She also expressed regret that the government, along with recommendations to alleviate the situation with construction materials and goods, did not bring a methodology on how to apply it together with indices that could also be used. This way, she claims, it is quite confusing and unknown how the situation in the market will develop. – The problem is not even the termination of contracts, but that in the end, the construction is not built. At this moment, the only thing that truly ensures the future is flexibility and stability – pointed out the Supply Chain Director of Kamgrad.

This is indeed five minutes for the procurement department and an opportunity to shine, but it does not have to be only in terms of procurement of goods.

– In difficult times, the heroes of the story come to the fore. This is an opportunity to recognize talents, people who are more resilient to these situations, make quick decisions, and are ready for concrete actions. We must not overlook how important people are, alongside the digitalization that is often emphasized – said Zorana Šubašić, Procurement Director for Southeast and Eastern Europe at Hemofarm.

Company goals and achieving certain numbers are a significant pressure, but by making quick decisions, some of them can be trampled to create long-term benefits for the company, believes Šubašić. She also mentioned that the focus of procurement in the post-COVID period is to develop people so that procurement can take on the function of risk management.

In any case, communication skills will always be of great benefit in business. HR expert and co-owner of the company Spirala Izvrsnosti Hrvojka Kutle in her lecture encouraged conference participants to realize how important the art of listening is for a successful business process. She noted an interesting fact that on average, people listen well for only 69 minutes a day. This was followed by a lecture by Nikša Sviličić, director of Proaktive, on managing interpersonal communication processes. Beware of those who touch their nose, forehead, and earlobe during a business conversation!

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