In an era where global supply chains face unprecedented challenges, Mohamed Fouad, International expert in logistics and supply chain management, is at the forefront of implementing resilient and agile procurement strategies. With extensive experience in managing high-stakes procurement operations, Mohamed emphasises the importance of risk mitigation, supplier collaboration, and leveraging technology to navigate disruptions and ensure business continuity.
In this insightful discussion, Mohamed shares how to integrate risk assessment frameworks, fosters long-term supplier partnerships, and builds a procurement ecosystem that is both agile and future-ready. He also reflects on key lessons learned from past disruptions and provides a glimpse into how the company is proactively shaping its procurement strategies for a more sustainable and efficient future.
How do you approach identifying and mitigating risks in your procurement strategy?
Our procurement strategy is built around several key pillars, including Strategic Procurement & Equipment, MEGA Projects for expansion and new investments, Critical Services, Supplies, and Outsourcing Management. Each of these pillars is directly linked to the organisation’s investment and business objectives. Any risk within these areas can have a significant impact, leading to financial losses, operational delays, or reputational damage.
To mitigate risks effectively, we focus on developing strong strategies and conducting detailed supply chain analyses across all pillars. We start with an annual risk mapping and assessment to identify potential risks in every activity. Single-source dependency is one of the most critical supply chain risks, so it must be carefully managed. Looking ahead, we rely on deep historical data analysis to identify patterns in market fluctuations, supplier and contractor performance, and production challenges. Technology plays a crucial role here—it is a key enabler of successful risk management.
Open communication and collaboration with suppliers are essential to staying informed about market challenges and best practices. However, risk management should extend beyond suppliers—it must involve internal teams and external stakeholders as well. This helps with early risk detection and enables proactive mitigation strategies.
Finally, we take a proactive approach by conducting detailed risk assessments that cover alternative sourcing strategies, inventory management, geopolitical challenges, and contingency planning. Continuous improvement is key, so we regularly review our strategies and analyse historical data to refine our risk management approach.
What lessons have you learned from past supply chain disruptions?
COVID-19 is the best example of a major crisis that had a widespread impact on supply chain operations. The key lessons learned from this disruption include the importance of building a flexible supply chain network and maintaining regular communication and evaluation to ensure suppliers’ continuous availability and accountability.
One of the most crucial factors is diversifying sourcing locations and logistics channels. If a crisis occurs in one region—such as the Far East—it is essential to have alternative sourcing options readily available. Strengthening supplier relationships and actively investing in supplier development also play a significant role in mitigating risks.
Technology has proven to be a game-changer. During COVID-19, businesses had to rapidly adapt by shifting meetings, workshops, training sessions, and even procurement systems to digital platforms. The ability to integrate advanced digital tools enabled organisations to maintain operations despite severe disruptions.
Cybersecurity must also be a high-priority consideration in risk management. Given the rise in global cyber threats and their direct impact on supply chains, businesses must invest in continuous innovation and updated technologies to safeguard their operations.
Additionally, workplace flexibility is a key takeaway. Companies that embraced flexible working models, automated processes, and supply chain digitalisation were able to reduce labour dependency while enhancing efficiency. Establishing multiple sourcing options for critical products and services, combined with maintaining a strong and engaged team, is vital to ensuring resilience in future disruptions.
How do you ensure that your procurement team is prepared to respond to unexpected challenges?
No one anticipated the Red Sea maritime crisis, which highlights the need for an updated and well-structured crisis management protocol within the procurement team. To ensure effective responses to unforeseen challenges, it is essential to invest in the team’s knowledge and expertise. This involves continuous training, participation in top-ranking technical seminars, and staying informed about global market changes and emerging risks.
Accountability plays a crucial role in preparedness. Each team member must actively assess and evaluate their area of responsibility, identifying potential risks and developing alternative scenarios to address unexpected challenges. Encouraging a proactive mindset ensures that mitigation strategies are already in place when disruptions occur.
Two critical competencies that every procurement team should develop are problem-solving capability and continuous improvement. These skills enable teams to analyse challenges effectively and implement adaptive solutions that strengthen overall supply chain resilience.
Leveraging technology is also key. Digital transformation through supply chain digitisation, process automation, and e-procurement systems enhances visibility and agility. Advanced analytics enable procurement teams to gain deeper insights into historical data, identify recurring challenges, uncover hidden costs, and optimise supplier performance.
By combining these elements—strategic training, proactive risk management, technological integration, and a strong understanding of organisational objectives—the procurement team can effectively navigate disruptions and maintain operational stability in the face of unexpected crises.
How do you balance risk management with maintaining agility in procurement decisions?
The first step in balancing risk management with agility in procurement is identifying risks across all procurement activities. This is achieved through in-depth analysis of historical procurement data and past crises, identifying recurring challenges, and pinpointing critical supply areas. Examining each stage of the procurement process enables us to define potential risks—whether internal, such as process inefficiencies, technological gaps, or workforce challenges, or external, such as market volatility, supplier reliability, and geopolitical disruptions. Once risks are prioritised, we implement proactive mitigation strategies and effective risk controls.
To maintain agility in decision-making, leveraging technology and process automation is crucial. Real-time data analysis, spend analytics, and digital procurement tools enhance visibility and responsiveness. Strong vendor management is equally essential—this involves continuous supplier communication, performance evaluations, and ensuring supplier diversity to mitigate dependency risks. Investing in talent development ensures that procurement professionals have the skills needed to adapt quickly to market fluctuations.
One of the most effective ways to maintain agility while managing risks is through an agile procurement committee. This cross-functional team, composed of representatives from procurement, legal, finance, operations, engineering, IT, and marketing, regularly reviews supply chain strategies and risk priorities. By fostering collaboration between departments, this approach ensures that procurement decisions align with organisational objectives, strategic initiatives, customer needs, and stakeholder expectations.
By integrating structured risk management with flexible and technology-driven procurement strategies, organisations can navigate uncertainties while maintaining the agility needed to drive growth and innovation.
Can you share examples of how you’ve built resilience into your supplier relationships?
To ensure resilience in our supplier relationships, we follow a structured approach. The first and most important step is centralising supplier data—this allows us to track vendor details, performance metrics, and risk profiles, with a particular focus on high-risk areas. Second, we identify and categorise critical suppliers, particularly those supporting strategic equipment, MEGA projects, and essential services. Finally, we emphasise continuous improvement in understanding supply chain risks and refining our mitigation strategies.
A strong example of resilience in action was during the Egyptian revolution in 2011, when the crisis escalated rapidly with little warning. The local market collapsed, suppliers halted services, and all communication channels—including mobile networks and internet access—were cut off. Despite these challenges, we had to maintain our 24-hour operations without disruption.
Fuel supply was identified as the highest risk factor. Leveraging the strong and flexible relationships we had built with our fuel supplier, we negotiated an emergency arrangement where they transferred a significant portion of their movable storage tanks to our facility. This ensured a continuous fuel supply without relying on standard procurement processes, allowing us to maintain operations despite the crisis.
The key to mitigating supply risk is fostering a WIN-WIN relationship with suppliers. Building mutually beneficial partnerships goes beyond price negotiations and cost reductions. It requires a focus on collaboration, shared objectives, and long-term value creation. This approach is not only critical for high-risk profiles but should be embedded across the entire vendor management strategy to ensure resilience and reliability in any situation.
