Preparing for the Euro Failure

No apologies for featuring again the Jason Busch series on Spend Matters US - 20 Ways the Falling Euro May Impact Sourcing, Procurement and Supply Chain Strategies

The concluding part 4 was published yesterday, and like the other three parts it is insightful and a “must read” for anyone involved in buying commodities or anything really from the Euro zone.

(Please click here for Part 1, Part 2 and Part 3 of this series.)

And there’s good news if you’ve enjoyed the series:

The early posts in this series have been well received, so we're likely going to flesh out the thinking a bit more and combine these four separate posts into a paper for access in downloadable format.

But this last instalment finishes with a bit of a grim warning.

We wish we could close on a positive note. But we can't. Because it's our belief that one of our predictions with the highest probability of coming true is that organizational confusion will reign as a combination of banks, vendors, consultants and BPOs try and capitalize on the situation surrounding currency uncertainty, providing confusing advice to different parties in the company who will in turn feud over what to do about the situation. Unfortunately, the end result for many organizations will be delayed decision making, which could prove unnecessarily costly. In contrast, the most astute organizations will collaborate together from the start, assigning a small, cross-functional team (including members of procurement, treasury and supply chain) to serve as "point" on the issue. This group should be tasked not only with overall procurement related currency strategy including technology and financial instrument/hedging adoption and usage, but should act as a filter on information coming in from the outside, as dozens of providers jockey to offer their advice, products and services.

We’ve featured our own predictions, doom and gloom in the main, about the prospects for Euro zone collapse, exit of various countries, civil unrest (my goodness we are being cheerful for a Friday)! So combining that with Jason’s outlook, we see a high probability of major disruptive events, AND organisations not really prepared to handle them. So take his advice – get ahead of the curve now, and if you haven’t already, make a start with your contingency plans.

Have a good weekend - we'll be back with our January music review tomorrow to lighten the mood...

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