From Gloom to Boom: How GPOs You Can Save the Day
February 27, 2025
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😅 A Much-Needed Confidence Boost
We're here to help.
Tariff volatility! Geopolitical uncertainty! Wages lagging behind inflation!
No wonder so many businesses - particularly SMEs - are experiencing a downturn in optimism. In this issue of The Sidekick, we take a look at Dun & Bradstreet’s Global Business Optimism Insights, and show you how working with a GPO can provide a much-needed confidence boost in uncertain times.
We also check out how one of our biggest members is diversifying its supply base to protect itself from tariff impacts, along with significant partnership news from one of our major suppliers, followed by career and technology news for procurement and supply chain professionals.
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Let's dive into Issue #014!
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😰 Declining Business Optimism?
Turn it around with a GPO.
Think about a time when you faced a setback in your personal life, like losing a job or going through a tough breakup. At first, it feels like a punch to the gut. But if that feeling sticks around, it can snowball into a broader sense of doubt and insecurity that affects everything else.
This is similar to what’s happening in the business world, as revealed in the recent Dun & Bradstreet Q1 2025 Global Business Optimism Insights. As optimism dwindles - just like that creeping self-doubt - the challenges can lead to a major downturn in overall outlook, making it tough to bounce back.
The report highlights a 12.9% quarter-on-quarter decline in overall business optimism. Medium-sized businesses are taking the hardest hit, with a staggering 36% drop in their outlook. Meanwhile, small businesses have managed a more modest 3.5% decline, and large enterprises are seeing a 12.7% increase in optimism.
Medium-sized businesses, according to report commentators, are struggling with the complexities of international trade - particularly in terms of ongoing tariff volatility - while also dealing with insufficient local supplies. This leaves them feeling vulnerable and unable to leverage resources like their larger counterparts.
The shift from a once-positive perspective to a cautious outlook indicates a broader market recalibration, and the severity of the decline for medium-sized businesses shows just how crucial support is right now.
The impacts of falling optimism are very real. 45% of U.S. managers believe their companies are likely to implement layoffs in 2025. Managers pointed to various factors behind this potential decision, including economic difficulties, challenges specific to their industries, the impact of automation and artificial intelligence, overstaffing, and expected policies from the Trump administration.
On the flip side, small businesses are showing some impressive resilience. Their ability to localize sourcing and quickly adjust production strategies has helped them maintain a relatively positive outlook, even in challenging times. This adaptability highlights their confidence in managing supply chain disruptions, proving that smaller firms can pivot effectively when the market shifts.
Large businesses, with their economies of scale, are feeling a boost in confidence. They have the resources to absorb financial losses and mitigate risks, which helps them weather economic uncertainties better than smaller firms. This advantage not only strengthens their outlook but also positions them to seize new opportunities as they arise.
The Role of GPOs
A GPO can provide a much-needed boost of confidence for businesses looking to regain their footing. By working together through a GPO, small and medium-sized enterprises can tap into the same negotiating power and economies of scale that larger corporations enjoy.
This collaborative approach significantly enhances the confidence and resilience of smaller businesses amid global uncertainties. GPOs allow these firms to pool their purchasing power, leading to better cost savings and improved access to critical resources. This teamwork not only levels the playing field but also empowers smaller firms to compete more effectively, fostering a renewed sense of optimism.
As the Dun & Bradstreet report emphasizes, the current global business landscape is filled with challenges, but there’s still room for optimism. Leveraging the benefits of GPOs can help small and medium-sized businesses get their mojo back, navigate supply chain complexities, and thrive in an unpredictable economic environment.
And you, being the strategic procurement mastermind you are, are in a prime position to make it happen!
Another Una Member Diversifies Amidst Tariff Volatility
In an impressive pivot aimed at boosting both profitability and resilience, a major toy manufacturer (and Una member) is shaking up its supply chain in a big way. The company is planning to significantly cut its reliance on China, projecting that by 2025, less than 40% of its global production will come from there - down from 50% just last year.
This strategic shift is a direct response to the rising U.S. tariffs on imported goods, prompting the manufacturer to explore a more geographically diverse supply chain. Currently, the company sources products from seven different countries, including Indonesia, Thailand, and Mexico, all in an effort to mitigate tariff exposure and bolster its supply infrastructure.
The company’s CEO shared that this transformation is about more than navigating tariffs; they are creating a flexible and resilient supply chain that can adapt to the many challenges of today’s market.
As part of this comprehensive strategy, the company has already closed a tier-1 supplier plant in China, which helped save $83 million in 2024. Looking ahead, they plan to cap production from any single country at 25% by 2027.
📰 In Other News...
Keeping a pulse on the industry.
AI Creating Digital Career Pathways in Supply Chain
The supply chain profession is gearing up to use artificial intelligence (AI) to create in-house digital pathways for career advancement, especially as it faces a talent shortage. According to Supply Chain Management Review, a recent survey found that 54% of employees feel unsupported in their career growth, leading to high turnover and knowledge loss.
With many companies operating on tight training budgets - 29% don’t even have a specific budget for upskilling - AI can step in as a game-changer. By automating routine tasks, AI not only frees up time for employees to focus on more interesting work but also offers personalized learning opportunities.
This way, organizations can help their teams build new skills and navigate their career paths more effectively, turning the talent gap into a chance for growth and engagement.
Are Procurement and Supply Chain Professionals Feeling the Pinch?
A recent report from Resume Now (as reported by Supply Chain Dive) highlights a growing financial strain among U.S. workers, with nearly 73% struggling to cover basic living expenses due to salaries not keeping up with inflation.
Surveying over 1,000 employees, the report reveals that 12% cannot consistently afford their necessities, while 24% find it challenging to meet essential costs. Additionally, one-third of workers feel their salaries lag behind inflation, and 55% believe their pay is lower than it should be.
Rising housing costs and increasing prices for essentials are major contributors to this financial stress. Notably, 29% of workers have moved to more affordable areas, while nearly 30% have taken on debt to manage living costs.
We’re interested in finding out if procurement and supply professionals are feeling the strain.
If you have a minute, please take a moment to complete a quick poll. All submissions will remain anonymous.
Google is Upending SEO Again
Google's introduction of "AI Mode" (currently in test phase) signals a dramatic upheaval in the search landscape, posing a serious threat to small businesses and publishers. This AI-powered feature, leveraging Google Gemini 2.0, offers users organized answers to complex queries directly on the search results page, reducing the need to visit individual websites.
The fallout is that if users find AI-generated responses satisfactory, they may completely bypass traditional sites. With only a limited number of sources cited, competition for those coveted top three spots will intensify, leaving many businesses vulnerable to a significant decline in organic traffic and visibility in an increasingly competitive digital arena.
$1.5 Billion in Crypto Stolen
Bybit, a major cryptocurrency exchange, has experienced the largest crypto heist in history, with hackers stealing approximately $1.5 billion in digital assets. The attack compromised Bybit's cold wallet and primarily involved ether. Blockchain analytics firm Elliptic linked the theft to North Korea's Lazarus Group.
Following the breach, users rushed to withdraw funds amid fears of insolvency. Bybit's CEO reassured customers that operations continue and the platform secured a bridge loan to cover potential losses.
✨ Supplier Spotlight
The ODP Corporation is making moves.
The ODP Corporation (an Una supplier) has announced a significant partnership with one of the world's largest hotel management organizations, making its subsidiary, ODP Business Solutions, a preferred provider for Operating Supplies & Equipment (OS&E).
This agreement positions ODP to support the in-room supply needs of hotels, tapping into the $16 billion hospitality industry. The partnership will enable ODP Business Solutions to offer a range of products, including high-quality textiles for bed and bath, liquid beauty products, and various in-room amenities.
CEO Gerry Smith noted that this expansion represents a major opportunity for ODP in the hospitality sector, which, along with adjacent industries, represents a total market opportunity of $60 billion.
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