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A CPO once described his team as the best firefighting team he had ever seen. Every fire was extinguished professionally, each time faster than the last. Only after the third incident in the same building did he wonder if the real problem might not be the fires, but the building itself.


Anyone who has worked in procurement for any length of time will recognize this scenario almost immediately, albeit in a different context. When a disruption occurs, such as a delayed delivery, a blocked port, or new regulatory requirements, the organization initially reacts as it always has. A backup supplier is activated, express freight is arranged, and every effort is made to close the supply gap as quickly as possible. However, as soon as the situation stabilizes, the team usually reverts to the procurement structure that existed before the disruption. The task, as many procurement organizations have historically defined it, is to return to normal. Rarely does anyone pause and question whether the structure they are reverting to was even the right one.


This article will cover the following points:

  • Why classic resilience in purchasing is insufficient if it only aims to return to the old structure after a disruption.

  • How structural dependencies, such as those on individual suppliers, regions or tight specifications, only become visible in times of crisis and then cause great damage.

  • How companies can make procurement more resilient by actively maintaining alternatives, consciously distributing volumes, and speeding up decision-making processes.


Where a restoration-oriented approach reaches its limits

This is precisely the uncomfortable realization that more and more procurement managers are having to grapple with: What should procurement return to if the supposed "normal state" no longer exists?


The classic approach of taking emergency measures and returning to baseline still works well for short, clearly defined events such as the failure of a single supplier or a shipment being held up in customs. These are solvable problems with a clear beginning and end, and recovery is the appropriate response. However, this pattern reaches its limits as soon as the disruption is not actually an event, but rather a symptom of something more structural.


Imagine a key supplier fails. Crucially, a disproportionately large share of the volume was already dependent on a single supplier in a single region, without a qualified alternative capable of absorbing the burden. This risk existed even when the overall conditions appeared more stable. The disruption didn't create this risk; it merely brought the lack of alternatives to light.


A new customs regulation rarely acts as a temporary shock that disappears after a few rounds of negotiations; rather, it usually permanently redefines the cost structure. Those who wait for prices to fall again are generally waiting in vain.

Similarly, sustainability and traceability requirements do not follow a short-term crisis logic, but rather increase over time, permanently raising the pressure on procurement organizations. A due diligence requirement introduced this year will not be withdrawn next year, but will become the new baseline upon which the next requirement is built.


The consequence of treating structural pressure as a one-off event is that procurement teams spend a disproportionately large amount of time repeatedly addressing the same underlying problem in acute crisis management, without ever tackling the root cause. Each individual response seems reasonable on its own, but in total, the organization ties up resources precisely where little value is created: in the repeated handling of avoidable problems.


The shift from restoring the past to maintaining function

What distinguishes those companies that actually escape this pattern is a very concrete shift in how they define success. Instead of asking how to return to the previous status quo, they ask what it takes for this organization to function well under constantly changing conditions. This perspective on the prevailing problem may sound rather insignificant on paper, but it changes almost every decision that is subsequently made.


A concrete example: From cost optimization to structural redesign

It's worthwhile to explore this idea using a concrete example because the conflicting objectives are real and not always immediately apparent. Imagine a manufacturer who sources a critical component almost exclusively from a low-cost region. Under stable conditions, this structure works exactly as intended: Unit costs are low, deliveries are predictable, and the relationship with the supplier is so well-established that quality problems rarely occur. From a purely business perspective, there is initially little reason to change anything.


However, the picture changes the moment external conditions shift. Trade restrictions, logistical bottlenecks, or new compliance requirements can be enough to transform the very concentration that previously enabled efficiency into a vulnerability. A single disruption in this region can suddenly affect large parts of the supply chain. The cause lies not in the individual supplier, but in the high dependence on a single source of supply. Efficiency and vulnerability are two sides of the same coin here: The same structure that appears advantageous under stable conditions becomes a weakness under changing circumstances.


In this situation, a recovery-oriented response seeks the quickest way back to the original, cost-optimized structure once the situation has calmed down. The volume is reconsolidated with the main supplier because the ultimate goal is to restore the previous cost position.


An adaptive response, on the other hand, poses a different question: What would need to change to prevent the next disruption of this kind from causing the same damage? In practice, this often means deliberately limiting the volume a single region can handle, even if it remains the most cost-effective option. Dual sourcing thus loses its character as a mere emergency solution and becomes a fundamental design principle. Those who bear the costs of maintaining a second qualified supplier are investing not only in additional capacity but also in flexibility.

For this safeguard to actually work in a crisis, simply listing an alternative supplier isn't enough. A supplier who has never actually placed an order isn't a true safeguard. Therefore, resilient companies shift volumes gradually and permanently, allowing the organization to gain experience with the alternative before it has to rely on it in a crisis. At the same time, procurement collaborates with product development early on because the fastest way to a broader supplier base is often to relax overly restrictive specifications that were originally tailored to the processes of a single supplier. Only then can a second or third supplier actually deliver an equivalent component, and not just an approximation.


The difference, therefore, lies not only in how an organization reacts during a disruption, but above all in what happens afterward. Does the structure revert exactly to its previous state, or does some of the lessons learned remain? Companies that prioritize continuity no longer treat disruptions as exceptions that the organization simply has to endure, but rather as indicators of how the procurement structure should be designed in the future. In this understanding, resilience is not something that is only activated when something goes wrong. It is built into the procurement architecture before the next disruption occurs.


What this means for daily work

This shift in perspective is also changing the day-to-day operations of procurement. A growing part of the work involves continuously qualifying and keeping alternative suppliers ready for deployment, rather than only activating them in a crisis. Qualification that only occurs under the pressure of an actual bottleneck often comes too late. This includes structuring contracts to allow for flexibility. This means, for example, shorter commitment periods, clauses for volume flexibility, or simpler exit options. While such agreements may cost a few percentage points in terms compared to long-term contracts, this disadvantage is offset the moment procurement volumes need to be quickly adjusted or shifted. It is equally important to review procurement decisions regularly, rather than considering them settled upon contract signing, because the conditions that justified a decision two years ago have most likely changed since then.


Why decision-making processes must also grow

This operational shift inevitably reveals the need for governance adjustments. Approval chains and escalation processes designed for a slower environment become bottlenecks themselves when framework conditions change more frequently than the process can keep pace. A procurement team that has invested in building leeway with suppliers gains little if actually utilizing that leeway still requires three approval stages and two weeks' lead time. The companies that adapt most quickly are typically those that have also shortened the gap between recognizing a need for action and having the actual authority to act. In an increasingly rapid environment, decision-making speed becomes just as much a resilience factor as the underlying procurement structure itself.


How resilience actually manifests itself in practice

Many teams can successfully manage a single crisis with sufficient overtime, strong commitment, and short-term measures. The more telling sign is how rarely this is actually necessary.


Resilience is therefore no longer primarily demonstrated by how well an organization reacts during a disruption. Rather, what is crucial is how little active correction is required when the framework conditions have already changed unexpectedly. The true capability lies not in a rapid recovery after a setback, but in fundamentally designing the structure around ongoing change so that the need for a dramatic recovery becomes increasingly rare.


This brings us full circle to the CPO from the beginning. His team became increasingly adept at extinguishing fires. However, real progress only began when the focus shifted from extinguishing fires to redesigning the building in such a way that it wouldn't catch fire again in the first place. This is precisely the difference between reactive and truly resilient procurement.


The first step towards greater resilience is to critically examine your own procurement organization. We would be happy to support you in identifying structural potential and working together to develop a procurement organization that remains effective even under changing conditions.



July 9, 2026

When Returning to the Old Structure Becomes the Real Risk

Article

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