Procurement and sourcing companies in Iran and the term of the Corona-virus (covid 19)
In late 2019, a strange virus called corona slowly spread around the world. Initially, there were reports of an outbreak in China, but after a while, an epidemic was first announced by the World Health Organization around the world and in Iran.
procurement in Corona First shock in the market
In this section, all countries were surprised and unpreparedness was evident in all countries, including Iran. Developed countries such as the United States or developing countries such as Iran have also performed very poorly in the field of procurement and sourcing and supply chain against coronavirus (covid19).
Reassessment of procurement and souring during coronavirus (covid19) pandemic
The first way to find a solution is to see the problem. in order to see better, we need a sharp evaluation if we want to reach a valid conclusion we should review all aspects of the market and the conditions of procurement and sourcing companies during the coronavirus in Iran and around the world.
Prior to the announcement of the Corona-virus(covid19) epidemic, markets were growing and most of the index was positive. However, due to the US sanctions on the oil and gas, petrochemical, and power plants in Iran, this index in Iran has much lower than in other countries.
normal conditions in logistics Railway, air corridors, cause of scheduling made it possible procurement companies in Iran and all the world able send all goods and raw materials.
Reassessment of procurement and souring during coronavirus (covid19) pandemic
The first way to find a solution is to see the problem. in order to see better, we need a sharp evaluation if we want to reach a valid conclusion we should review all aspects of the market and the conditions of procurement and sourcing companies during the corona-virus in Iran and around the world.
Prior to the announcement of the Corona-virus(covid19) epidemic, markets were growing and most of the index was positive. However, due to the US sanctions on the oil and gas, petrochemical, and power plants in Iran, this index in Iran has much lower than in other countries.
normal conditions in logistics Railway, air corridors, cause of scheduling made it possible procurement companies in Iran and all the world able send all goods and raw materials.
first shock to procurement and supply chain by announcing coronavirus (covid19) pandemic
after the announcement of the Coronavirus(covid19) pandemic, the demands for raw materials in the medical and disinfection sectors increased sharply, and in return, decreased in other materials, such as crude oil, metals.
procurement companies and imbalances in orders were one part of the problem companies never-before-seen, and the other problem was the logistical problem that, due to the high prevalence of the coronavirus (covid19), the borders of countries were closed without any rules or protocol.
For example, the border between Iran and China was open, but Russia and China stopped all customs exchanges to prevent the spread of the coronavirus.
In this situation, procurement companies were confused due to lack of forecast and previous history At first, it was a logistics and transportation problem.
They realized that in this situation, no forecast is correct for sending the goods and products and the customer should be informed about the delay and other problems such as clearance by custom’s destinations and started to evaluate the situation base on reality.
in the second Part, Costs have risen sharply due to declining demands, and it is no longer possible for procurement companies to make plans for profits and strategies like before coronavirus times.
The last problem was the lack of coordination in composite goods and products, for example, fire doors with vision panels -glazes have at least three types of basic raw materials, first iron, second, accessories, and finally glass.
In the experience of Rira procurement Company in Iran during the coronavirus pandemic, we have ordered 75 fire doors with vision panels -glazes. All raw materials were ordered and the factory started producing fire doors, but unfortunately due to the coronavirus and contamination conditions of covid 19 Iranian customs did not allow the clearance of the glass sent from Germany for about 2 months, and finally, the fire doors could not be delivered to the customer on the schedule.
After these events, procurement companies realized the high risk of this business in the situation of Coronavirus pandemic, manager of the procurement company find out the previous planning will no longer be efficient and will have no output, and in this process, procurement companies, factories, and customers will all be dissatisfied.
New strategy of procurement in Corona virus
After this assessment and the initial shock of Coronavirus to the market procurement companies in Iran and around the world change methods and strategy, this action was inevitable.
In the new strategy, the schedule was updated and all conditions and unpredicted delays were informed to the customer before the purchase or order.
The other part was declared price list to customers because all price increase has no solution due to the decrease in demand and must be corrected in a longer period of time.
Another part of the change in the strategy of procurement companies was to make more use of online services and reduces services in person. In this part, all meetings were held in the remote and online platform.
Markets and post-corona recovery for procurement companies
Realistically, it takes at least one year to return to the pre-corona situation in developed countries and a minimum of 4 years in developing countries, which means that the global market is shrinking.
For example, a procurement and sourcing company in the United States will return to normal earlier due to vaccination conditions, but a procurement company in Iran will need at least 3 years to start a normal condition due to the lack of corona vaccination.
WHO Recommendations for Coronavirus
Wear a mask that covers your nose and mouth to help protect yourself and others.
Stay 6 feet apart from others who don’t live with you.
Get a COVID-19 vaccine when it is available to you.
Avoid crowds and poorly ventilated indoor spaces.
Wash your hands often with soap and water. Use hand sanitizer if soap and water aren’t available.
finally, the Rira procurement Company in Iran, according to the Coronavirus pandemic, is ready to provide all services in the online and remote platform to all domestic and international customers.
