The procurement checklist for uncertain times: How to drive long-term value in volatile markets

Keeping costs under control is a challenge when energy, freight, and supplier markets are rapidly shifting. In these conditions, targeted action – rather than reactive cost-cutting – is key to protecting margins while maintaining resilience.

□  To what extent are your categories aligned with your business’s priorities and goals?

□  Are you balancing cost efficiency with supply resilience in sourcing decisions?

□  Does the structure of your categories reflect current market dynamics?

□  Do you have visibility into key cost drivers such as energy, freight, and upstream inputs?

□  Have you distinguished between structural cost increases and opportunistic supplier price rises?

□  Are you actively challenging supplier surcharges and cost pass-through mechanisms?

□  Do you have a price task force in place to challenge and prevent unjustified price increases?

□  Are you proactively preventing temporary cost increases from becoming embedded in long-term supplier pricing?

□  Are you taking advantage of volume discounts by consolidating suppliers where appropriate?

□  Have you considered alternative or regional suppliers to reduce exposure to disruption and increase supply optionality?

□  Can specifications, inputs, or supply approaches be adapted to reduce cost or mitigate supply risk?

□  Can cross-functional cooperation create synergies and unlock additional savings?

Outsourcing and external support can improve efficiency and reduce pressure on internal teams, particularly in volatile markets where flexibility is critical.

□  Is outsourcing an option to improve flexibility as well as reduce cost?

□  Which processes can be outsourced to take pressure off your team?

□  Are there parts of the strategic purchasing process that could benefit from external expertise?

□  Can external partners help manage market volatility or supply risk more effectively?

□  Are you leveraging third parties to increase speed and adaptability in changing conditions?

Optimising working capital is an impactful way to improve cash flow and financial stability, particularly as disruption drives longer lead times and higher inventory requirements.

□  Do you have an in-depth understanding of payment terms for your liabilities, and how they compare to the wider industry?

□  Do procurement and sales teams have a shared understanding of payment terms, and are these regularly benchmarked?

□  Are your customers’ payment terms shorter than those of your suppliers?

□  Do you have controls in place to ensure negotiated payment terms are met?

□  Does your accounts payable process need to be adapted to reflect current market conditions?

□  Have you stress-tested working capital against extended lead times or logistics disruption?

□  Are longer transit times increasing cash tied up in inventory?

□  Have you checked your inventory levels and exposure to volatile input costs?

□  Are inventory strategies aligned to critical supply risks, rather than blanket stockpiling?

□  Can warehouse throughput times be optimised?

In an environment of ongoing disruption, understanding and managing supply chain risk is crucial for maintaining continuity and preventing cost escalation.

□  Do you have visibility of supplier exposure beyond Tier 1?

□  Have you identified dependencies on energy-linked or upstream inputs?

□  Are any of your supply chains exposed to high-risk logistics corridors or regions?

□  Do you have contingency sourcing or logistics options in place?

□  Are you prepared for recovery phases, not just initial disruption?

□  Can you act quickly to prevent temporary cost increases from becoming embedded in supplier pricing?