The COVID-19 pandemic has caused unprecedented nightmares in the supply chain that no one could have foreseen. From closed borders to skyrocketing shipping costs, the pandemic has forced procurement professionals to rethink numerous assumptions, completely transforming the approach they were accustomed to in previous years.

Take "just-in-time delivery" as an example. The pandemic has ruthlessly highlighted how vulnerable we are to disruptions on the supplier side. At the same time, due to the economic impact of the crisis, buffer stocks represent a luxury that only a few can afford.

First and foremost, it's important to resist the temptation to diversify your maintenance, repair and operations (MRO) supplier base. Instead, the key to success is to use a narrow group of suppliers that you trust and can be sure won't let you down. Supplier rationalisation was by far the most popular procurement efficiency strategy we reported on during the pandemic as part of our indirect procurement report with the Chartered Institute of Procurement & Supply (CIPS).

"There is clear pressure to rationalise suppliers. It's a good idea and worth considering, but frankly I think nowadays it's better to focus on supply chain resilience rather than rationalisation," says Dr John Glen, economist at CIPS and visiting fellow at Cranfield School of Management.

"This is a long-term project, but in the next 6-18 months we need to focus on building resilience and managing the risks in the supply chain. Rationalisation is a process that happens in the background."

When MRO supply chains come under pressure, it's important to act quickly to maintain production. However, according to David Loseby, procurement director at aircraft engine manufacturer Rolls-Royce, the consequences of emergency measures must also be taken into account.

"When something like a pandemic happens, we need to be sure that what we're doing doesn't cause long-term damage. What can we do that's sustainable and transparent for a period of time, so that the organisation understands it as well?" he asks.

He also warns that there's a risk of error when adopting an overly simplistic approach – such as whether spending has increased or decreased.

Loseby adds that in an era of tight supply chains, rather than simply switching from one supplier to another, it's important to develop an agile supply chain that can adapt to new circumstances. "The reality is that you simply can't hold millions of pounds worth of buffer stock," he adds.

Both Glen and Loseby agree that efficiency and flexibility are not mutually exclusive. Using e-procurement and VMI (vendor-managed inventory) solutions provided by a reliable and stable procurement partner can help make the supply chain more resilient.

It's a mistake to think that supply chain flexibility is only important from a business inputs perspective. If we don't have visibility into what we're consuming, then we can't effectively plan the supply side of the procurement operation.

"We very often see that multi-site businesses have little visibility of stock levels," explains Alex Davies, director of customer procurement solutions at RS.

"It comes down to data quality," he continues. "It depends on what systems they're using and how those systems connect to their suppliers. If their supplier base is fragmented and too many people are involved in MRO procurement, then the likelihood of having good quality and accessible data decreases. If they adopt a more mature approach and partner with a vendor like RS, they can gain access to much broader data and solutions that enable them to check for themselves whether they have what they need in stock."

While cost reduction remains the top priority, sustainability, ethics and the ability to plan ahead are also key strategies when working with MRO suppliers to source critical components.

"To achieve these goals, it's essential to work with proven partners who share the same objectives. The ordering process must include a sustainability plan, as well as a programme of policies, processes and governance that put this into practice," explains Kate Davies, Head of Global Commercial Services.

"Ethical sourcing is becoming increasingly important in the eyes of boards, investors and customers," she adds. "One of the most important aspects of this shift is that we need to start viewing the procurement process as a factor capable of challenging the status quo and embedding ethical sourcing principles into the procurement business process."

Very few procurement teams receive additional headcount to manage supply chain sustainability. "This is yet another reason why businesses need to free up human capacity with solutions such as VMI and e-procurement," concludes Alex Davies.

It simply follows from all this that supply chain resilience depends on the quality, reliability and knowledge of suppliers. That's why it's so important to work with the right MRO partner to guarantee the future of your supply chain.