By: Kate Davila, NASPO
In an era where supply chain disruptions have become increasingly common, state procurement offices are busy adapting their strategies to ensure continuity of essential services. Recent conversations with procurement professionals from Maryland and Pennsylvania help reveal how states are implementing lessons learned from recent disruptions such as the port strike and hurricanes, as well as best practices taken from 2020 and the pandemic to build more resilient supply chains.
Learning from Past Disruptions
“Compared to the unexpected and overwhelming disruptions we faced during COVID-19, the Commonwealth has been significantly better prepared for the recent port strike” explains Brian Esposito, Deputy Secretary for Procurement at the Pennsylvania Department of General Services, contrasting recent port strikes with the pandemic’s onset. Being prepared in the instance of the port strike allowed states to assess their current processes and potential impacts before disruptions occurred.
Jamie Tomaszewski, Acting Deputy Chief Procurement Officer for the State of Maryland described that their process has evolved to emphasize local sourcing and robust statewide contracts. “We focused a lot more time on buying locally,” Tomaszewski notes, highlighting how this strategy has reduced dependency on international supply chains.
Key Strategies for Building Resilience
Several common themes emerged from these procurement leaders about how to better prepare for potential disruptions within the supply chain:
1. Proactive Planning and Forecasting
Pennsylvania has implemented comprehensive procurement planning with a focus on anticipating needs rather than reactive purchasing. “One of our standout best practices has been the integration of advanced forecasting and planning tools into our procurement processes. These systems have greatly improved our ability to predict potential supply chain issues and take proactive steps to address them. Additionally, we’ve modernized our contract management processes, ensuring that we can respond quickly and effectively to unexpected disruptions.” Esposito explains. States should also try to gain visibility into the supply chain for critical goods via their suppliers’ Tier one suppliers, as during the pandemic, it was discovered that many of their stateside suppliers were all getting their merchandise from the same suppliers in China.
2. Diversified Sourcing
Both states emphasized the importance of maintaining multiple supply sources. “Our sourcing strategy has always emphasized diversification, but we’ve reinforced this practice since the pandemic. We now actively work to diversify our supplier base for critical goods and services, ensuring that we aren’t overly reliant on a single source” says Esposito.
3. Strengthened Statewide Contracts
Maryland has expanded its statewide contracts to ensure resource availability and reduce emergency procurement needs. “We have statewide contracts in place that are vetted, and we know we can rely on them and avoid a scramble for supplies in emergencies,” Tomaszewski explains. Procurement officials should also ask where in line the state is for the distribution of goods (i.e. ice, debris removal, etc.) It’s important to be prepared and not wait till after the hurricane to discover the state contract won’t be fulfilled because the supplier ran out of supplies with their first contracts.
Looking Ahead
Both states stress the importance of constant preparedness. “If you stay ready, you don’t have to get ready,” Esposito emphasizes, highlighting the need for continuous preparation rather than reactive measures.
For other procurement professionals looking to improve their supply chain resilience, both leaders emphasize several key points:
- Understand your markets and critical needs
- Maintain open communication with suppliers and other state procurement offices
- Develop robust statewide contracts with multiple suppliers
- Focus on building relationships with local businesses
- Implement proactive planning and forecasting systems
As supply chain disruptions become more frequent, whether from labor disputes, natural disasters, or global events, these strategies provide a framework for building more resilient systems, with an emphasis on preparedness, diversification, and strong relationships appearing to be key to navigating future challenges successfully.