Future of Sourcing - Strategic Sourcing https://www.futureofsourcing.com/tags/strategic-sourcing en Beyond Acknowledgement: Seeing the Future of Sourcing Awards Through the Expanded Lens of Global Impact https://www.futureofsourcing.com/beyond-acknowledgement-seeing-the-future-of-sourcing-awards-through-the-expanded-lens-of-global <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Beyond-Acknowledgement_Future-of-Sourcing-Awards.jpg"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Beyond-Acknowledgement_Future-of-Sourcing-Awards.jpg" title="After a two-year hiatus due to the COVID-19 pandemic, SIG CEO and President Dawn Tiura announces the return of the Future of Sourcing Awards." class="colorbox" rel="gallery-node-2165-IpjgJjHT8uo"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Beyond-Acknowledgement_Future-of-Sourcing-Awards.jpg?itok=URjpUUlX" width="624" height="325" alt="After a two-year hiatus due to the COVID-19 pandemic, SIG CEO and President Dawn Tiura announces the return of the Future of Sourcing Awards." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>After a two-year hiatus due to the COVID-19 pandemic, SIG CEO and President Dawn Tiura announces the return of the Future of Sourcing Awards. Now is the time to recognize and celebrate the hard-won wins, lessons learned and innovative changes of the past two years.&nbsp;</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/looking-for-a-career-in-sourcing-and-procurement-heres-how-to-get-started">Looking for a Career in Sourcing and Procurement? Here’s How to Get Started</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>A recent <a href="https://www.emeraldgrouppublishing.com/calls-for-papers/impact-covid-19-strategic-sourcing-decisions-and-supplier-performance">article</a> reported that the COVID-19 pandemic has &ldquo;affected the entire purchasing and supply chain management process.&rdquo; As a result, we constantly face &ldquo;multiple problems,&quot; including &quot;supply shortages, material price increases, logistics challenges, unavailability of containers and timely vessel connections, congestion at ports, and delivery delays that significantly impact supplier performance.&rdquo;</p> <p>So, what does this have to do with SIG&rsquo;s upcoming <a href="https://bit.ly/38IyFiY" target="_blank">Future of Sourcing Awards</a>?</p> <p>The pandemic dramatically changed our lives both personally and professionally. Before then, I wrote the following in 2019: &quot;Awards can change the trajectory of your career&hellip;they can change who and why someone reaches out to you for a new position, and best of all, they ratify that you have done an amazing job.&rdquo;</p> <p>Of course, the above words are as true today as they were back then. However, what has changed is the lens through which we view the innovation, leadership and transformation that are critical to the sourcing industry.</p> <p><a href="https://bit.ly/3tYsqhM" style="text-decoration-line: underline;" target="_blank"><img alt="Future of Sourcing Awards" src="https://futureofsourcing.com/sites/default/files/styles/large/public/field/image/FOS_Future-of-Sourcing-Site_Fall-2022_728x90_V2.jpg?itok=IdrPEbUz" style="width: 480px; height: 59px;" /></a></p> <h1>How the Lens Is Different</h1> <p>Traditionally, strategic sourcing is described as a procurement approach that considers the overall value of a vendor relationship beyond a transactional level, like cost. In other words, it is an all-encompassing relational approach with vendor &ldquo;partners&rdquo; that facilitates greater collaboration, innovation and accountability toward achieving a mutually rewarding outcome for all stakeholders. One example of innovation through a partnership mindset is the ubiquitous upside-down Heinz ketchup bottle.</p> <p>According to reliable sources, the bottle design idea originated with a Heinz supplier and was championed by the company&#39;s procurement department. The rest, as they say, is history.</p> <p>In the past, such innovative and collaborative zeal would have been a hallmark of strategic sourcing excellence &ndash; as it should be. The stakes have become much higher in a post-pandemic world with considerable geopolitical instability.</p> <h2>A Wider Recognition</h2> <p>When you hear the words supply chain, what immediately comes to mind?</p> <p>When you shop at the grocery store are the shelves usually well-stocked? How about that phone or mobile device you carry in your hand? What about filling your tank at the gas station?</p> <p>There is not one part of our everyday lives untouched by our supply chains &ndash; and strategic sourcing.</p> <p>This knowledge is not new for those of us in the industry. But it is a new revelation for the rest of the world.</p> <p>I can&#39;t think of a day that goes by when you don&rsquo;t hear &ldquo;supply chain&rdquo; in the news. Whether we are talking about delivering humanitarian aid to parts of the world in great need or the price of fuel at the pump, it all comes down to supply.</p> <p>Through this expanded lens, our profession and, as a result, awards take on even greater importance beyond the acknowledgement of a job well done.</p> <h2>A World of Difference</h2> <p>What are the benefits of strategic sourcing?</p> <p>For those of us in the industry, we can readily point to any number of benefits, from risk mitigation and competitive differentiation to lower costs and better product quality.</p> <p>What is different today is that we see the impact of what we do on a very real and personal level and how we are making a difference in the world beyond our profession.</p> <p>Within this context or expanded lens, recognition and awards take on a whole new meaning. I have never been prouder to be part of this industry and the great people who are in it with me.</p> <p>Now is the time to recognize your team or someone you know who is transforming the sourcing industry &ndash; and the world &ndash; through their ideas and actions. Please consider <a href="https://bit.ly/38IyFiY" target="_blank">submitting a nomination</a> on behalf of yourself, your team or someone you admire. Nominations close May 20.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/future-of-sourcing-awards" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Future of Sourcing Awards</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Beyond Acknowledgement: Seeing the Future of Sourcing Awards Through the Expanded Lens of Global Impact - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/beyond-acknowledgement-seeing-the-future-of-sourcing-awards-through-the-expanded-lens-of-global"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sun, 10 Apr 2022 17:00:00 +0000 Dawn Tiura 2165 at https://www.futureofsourcing.com https://www.futureofsourcing.com/beyond-acknowledgement-seeing-the-future-of-sourcing-awards-through-the-expanded-lens-of-global#comments How Procurement Can Respond to Inflation and Volatility https://www.futureofsourcing.com/how-procurement-can-respond-to-inflation-and-volatility <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/How%20Procurement%20Can%20Respond%20to%20Inflation%20and%20Volatility.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/How%20Procurement%20Can%20Respond%20to%20Inflation%20and%20Volatility.png" title="How Procurement Can Respond to Inflation and Volatility" class="colorbox" rel="gallery-node-2054-IpjgJjHT8uo"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/How%20Procurement%20Can%20Respond%20to%20Inflation%20and%20Volatility.png?itok=cJFrXJLy" width="624" height="325" alt="How Procurement Can Respond to Inflation and Volatility" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>How Procurement Can Respond to Inflation and Volatility</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/strategic-sourcing-in-a-hyperinflationary-environment">Strategic Sourcing in a Hyperinflationary Environment</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Inflation is a word that has been on the minds of every procurement team in 2021. We are seeing a sustained period of supply shortages and price volatility of the kind that most commercial professionals will not have experienced in their working lives. In one way or another, it is having an impact on virtually every business.</p> <p>The causes and the severity of inflation are complex. Much of the origin comes back to either COVID or climate impacting the availability of raw materials, people and infrastructure. Thereafter, we can layer on compounding events like the Suez Canal blockage or <a href="https://www.bloomberg.com/news/articles/2021-08-28/one-stuck-box-of-fertilizer-shows-the-global-supply-chain-crisis" target="_blank">Chinese port closures</a>, as well as sudden and rapid shifts in demand for glass, plastics and corrugate, for example. And then there are semiconductors, of course, reflecting where a fast-growing global trend and just-in-time supply chain meet constrained supply.</p> <p>While the causes are complex, the outcomes are common &ndash; availability drops and prices increase. Service levels are often affected too. For example, major players in the logistics market are scaling back service levels and increasing prices. Why is this? Because they have to and they can.</p> <p>The same is true of shipping channels where prices are in some cases 10 times higher than in 2019 for an on-time delivery metric (at 38%) that is half as good as 2019. And then there are semiconductors, where some lead times have reached over a year.</p> <p>For a professional whose focus is buying, a sellers&rsquo; market is not where procurement wants to be. For many procurement professionals, it is not a place that they have been to before.</p> <p>So, is the only option being held captive to price? Well, you may need to accept that your year-on-year savings target may suffer, so it is time to think differently about how to create value.</p> <h2>Get in the Right Mindset</h2> <p>First of all, it is time to face the facts. Inflation and shortages are here, as are price increases. If you do what you have always done, you will not get the same outcome. If you procrastinate or hold off hoping for improvement, right now, you will not get the same outcome.</p> <p>Buying in inflationary markets is different. But it also enables you to focus on new ways of creating value. It needs you to be on your game and it needs the best of you as a supply market expert and a commercial architect. You will be faced with some of the following:</p> <ul> <li>Higher prices</li> <li>Unfavorable quality or service levels</li> <li>Slow lead times</li> <li>No supply</li> <li>Force majeure or unforeseeable circumstances</li> </ul> <p>Here are three tips to position yourself to get the best out of the current markets by looking at your organization, your supply markets, and of course, yourself.</p> <h3>1. Business Focus</h3> <p>How good is your data? How connected are you to your customers? Are you connected into product and commercial teams? These are all going to be areas of focus when tackling inflation to stabilize, reduce or eliminate demand or to embed the effects into manufacturing and commercial strategy.</p> <p>A good place to start is undertaking a risk assessment to map what you buy and the contracts you have to current market volatility and forecasts. You cannot do everything, so focus on critical goods and services and supply chains. Armed with this, identify the key business owners and form a crisis team to figure out how to bake the reality into the business.</p> <p>The tactics you are able to use will depend upon the specific market dynamics. But consider the following:</p> <p><img alt="" src="https://futureofsourcing.com/sites/default/files/Inflation%20%281%29.png" style="width: 900px; height: 289px;" /></p> <p>Understanding your internal position gives you options. There are likely things that can be done to reduce exposure. Further, where price and availability occur, other operational and commercial contingencies can be enacted to reduce waste, risk and cost exposure.</p> <p>Your business will thank you for it.</p> <h3>2. Market Focus</h3> <p>Suppliers may look like the largest part of the problem, but they are also going to be a large part of the solution. First and foremost, if you have to become a price taker, become an informed price taker. And that means navigating market data.</p> <p>Do you know if you are absorbing market-wide inflationary costs or if you are paying more because you are working with a certain supplier? Banging the table and asking for a discount probably is not going to work.</p> <p>But getting ahead on data is going to make you more informed when striking deals. What is the market rate and how is it trending? If you cannot answer this then you are uninformed and at the mercy of a sellers&rsquo; market.</p> <p>Getting ahead of the game is going to mean understanding the market and your position in it, as well as tirelessly searching for the best deal or alternate ways of creating value. It will not be easy, but it will be worth it. Consider these tactics:</p> <p><img alt="" src="https://futureofsourcing.com/sites/default/files/Volatility%20%281%29.png" style="width: 900px; height: 355px;" /></p> <p>As a procurement professional you are the expert on markets. By deploying some of the tactics above you will identify yourself as a problem solver, someone who understands business needs and uses creative supply solutions to solve them. Now that is better than being known as the process and price person, isn&rsquo;t it?</p> <p>We all want to move up the value chain after all.</p> <h3>3. Focus On You</h3> <p>Unless what happened above is your regular day-to-day or you are used to buying in inflationary markets, chances are that you will try and learn some new things in the coming weeks and months. So, what are the most important things for you personally to remember when thinking about mindset, business and market focus?</p> <p><img alt="Inflation Market Focus" src="https://futureofsourcing.com/sites/default/files/Inflation%20Market%20Focus_Proxima.png" style="width: 935px; height: 505px;" /></p> <p>Shortages and inflation are big business problems. Even if you cannot solve them completely, there is value to be made, success to be had and an opportunity to reposition your impact.</p> <p>Let&rsquo;s not pretend that you are going to outperform the market, but you might be able to get the best that the market can offer while minimizing further operational or commercial waste in your business. That might be what success looks like.</p> <p>But you will only be successful if you proactively make the changes that will allow you to do so.</p> <h2>The Outlook</h2> <p>Inflation and shortages are not going anywhere fast. In a normal market, we might be seeing a way through it by now, but the compounding factors keep coming. The mitigating factors like onshoring and automation, which may spark deflation in 2023/2024 are either mid-term plays or suffering from delays, skill shortages and inflation.</p> <p>So go forth, make the best of it and polish up your skillset at the same time. You might just come out on the other side stronger, better and a little further up the value chain.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/inflation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Inflation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/proxima" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Proxima</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supply-shortages" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Shortages</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/price-volatility" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Price Volatility</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="How Procurement Can Respond to Inflation and Volatility - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/how-procurement-can-respond-to-inflation-and-volatility"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 14 Sep 2021 02:00:00 +0000 Simon Geale 2054 at https://www.futureofsourcing.com https://www.futureofsourcing.com/how-procurement-can-respond-to-inflation-and-volatility#comments Boosting Supplier Relationships Through Total-Value Sourcing https://www.futureofsourcing.com/boosting-supplier-relationships-through-total-value-sourcing <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Boosting%20Supplier%20Relationships%20Through%20Total-Value%20Sourcing.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Boosting%20Supplier%20Relationships%20Through%20Total-Value%20Sourcing.png" title="Boosting Supplier Relationships Through Total-Value Sourcing" class="colorbox" rel="gallery-node-2042-IpjgJjHT8uo"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Boosting%20Supplier%20Relationships%20Through%20Total-Value%20Sourcing.png?itok=UDvHfc1O" width="624" height="325" alt="Boosting Supplier Relationships Through Total-Value Sourcing" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Boosting Supplier Relationships Through Total-Value Sourcing</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/sustainable-sourcing-greener-procurement-grows-with-optimization">Sustainable Sourcing: Greener Procurement Grows with Optimization</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Sourcing leaders today operate within an intricate web of interconnected buyers and suppliers from around the globe. When awarding parts of a business, companies must weigh more than the cost of what they buy. Prospective suppliers have to be viewed through multiple lenses. Prioritizing cost savings alone may seem like a clear win for your bottom line, but it can lead to missed opportunities to capitalize on other forms of value that suppliers can extend.</p> <p>Taking an integrated approach to managing supplier relationships can unlock deeper benefits&nbsp;<span style="font-size: 13.008px;">for both buyers and vendors, including product innovation, quality, better service terms and adherence to corporate social responsibility commitments. In fact, new research from </span><a href="https://www.mckinsey.com/business-functions/operations/our-insights/taking-supplier-collaboration-to-the-next-level" style="font-size: 13.008px;" target="_blank">McKinsey</a><span style="font-size: 13.008px;"> shows that companies who regularly collaborated with suppliers demonstrated higher growth, lower operating costs and greater profits.&nbsp;</span></p> <h2>Build Your Supplier Partnerships</h2> <p>It&rsquo;s ideal to facilitate an environment where suppliers can play to their strengths and build off mutual trust to further strategic sourcing decisions. But often, companies with the most spend are those with less time to advance supplier relationships. The sheer volume of work for procurement teams can inadvertently skew relationships with key suppliers toward transactional contracts rather than strategic partnerships. Essentially, they are putting money in place of time and joint effort. The better move is to enable a process where you can leverage your suppliers&rsquo; expertise and enable them to create value for you.</p> <p>But how is that achieved?</p> <p>Promoting greater strategic alignment may sound time consuming, but scalability is easily solved by implementing modern solutions that give procurement personnel back more of their time. <a href="https://www2.deloitte.com/content/dam/Deloitte/us/Images/Misc/infographic/us-2021-global-cpo-infographic.pdf?icid=learn_more_content_click" target="_blank">Deloitte&rsquo;s 2021 CPO survey</a> found that, in order, CPOs are prioritizing operational efficiency, costs, digital transformation, innovation, and introducing new products and services. Supplier relationships are essential to all these goals &ndash; especially costs, innovation and new product introductions &ndash; and can be easily facilitated by working through digital transformation. It is extremely difficult to accomplish all five without utilizing automation, regardless of your purchasing power.</p> <h2>Rise to the Top</h2> <p>The best procurement teams engage the supply base to help find solutions that work for all parties, and leverage optimization and automation technologies to not only weigh the various tradeoffs of different scenarios but centralize supplier collaboration.</p> <p>Here&rsquo;s a great example: You may oversee sourcing of packaging materials for your company&rsquo;s products, and you have the specifications from your internal spend stakeholders. As you include those detailed specs on your bid sheet to share with suppliers, you should also give suppliers the ability to submit alternative offers.</p> <p>Perhaps one supplier can come close to those specifications but offer more recycled material in their packaging. Another may be able to bundle several items for a better price or payment terms. Yet another may be slightly higher in price, but they are a favored incumbent and also have greater capacity to handle more volume in a shorter timeframe.</p> <p>The sourcing process should make it easier to capture such creative bids, and sourcing optimization software is designed to handle this type of automated data collection and scenario analysis on these different types of bids. Otherwise, procurement will miss the potential benefits that come from improving the bidding options for suppliers.</p> <h2>Looking Ahead</h2> <p>Remember, the race to the bottom is long over. Constantly asking your suppliers to do more for less is unsustainable for both parties. Going back to Deloitte&rsquo;s survey, 56% of CPOs said they&rsquo;ve had suppliers go bankrupt or been severely hampered in the past 12 months, and 32% say they are losing revenue due to supply shortages. The next practice is to find common value that enables both parties to grow, remain resilient and contribute value. Both buyer and supplier &ndash; and everyone else in the connected supply chain &ndash; gets exposed when this shared value falls out of balance.</p> <p>Furthermore, collaborating with suppliers shouldn&rsquo;t be restricted to existing business relationships. Engaging with new suppliers during the award process affords them the opportunity to present all their advantages in addition to pricing. Understanding what&rsquo;s available in the market, and the options at your disposal, enables procurement to be faster and more agile when a need arises.</p> <p>At the end of the day, supplier relationships are still relationships driven by human decisions and feelings. While automation and enabling technologies are crucial for sourcing performance, the process you establish determines whether those technologies are helping to boost those relationships and at the end of the day, maximize total value for all involved.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-relationship-management-srm" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Relationship Management (SRM)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/keelvar" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Keelvar</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/total-value-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Total-Value Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Boosting Supplier Relationships Through Total-Value Sourcing - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/boosting-supplier-relationships-through-total-value-sourcing"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 24 Aug 2021 02:00:00 +0000 Alan Holland 2042 at https://www.futureofsourcing.com https://www.futureofsourcing.com/boosting-supplier-relationships-through-total-value-sourcing#comments Strategic Sourcing in a Hyperinflationary Environment https://www.futureofsourcing.com/strategic-sourcing-in-a-hyperinflationary-environment <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Strategic%20Sourcing%20in%20a%20Hyperinflationary%20Environment_0.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Strategic%20Sourcing%20in%20a%20Hyperinflationary%20Environment_0.png" title="Strategic Sourcing in a Hyperinflationary Environment" class="colorbox" rel="gallery-node-2026-IpjgJjHT8uo"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Strategic%20Sourcing%20in%20a%20Hyperinflationary%20Environment_0.png?itok=VoqFsLFV" width="624" height="325" alt="Strategic Sourcing in a Hyperinflationary Environment" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Strategic Sourcing in a Hyperinflationary Environment</h1> <p><em>Maximize value and manage risk in challenging conditions.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/use-eauctions-instead-of-3-bids-and-a-buy-for-greater-savings">Use eAuctions Instead of “3 Bids and a Buy” for Greater Savings</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Over the past year, growing demand has driven price increases and margin pressures across a wide range of commodities. Since mid-2020, steel, for example, has risen by <a href="https://fred.stlouisfed.org/series/WPU101707" target="_blank">85%</a>, lumber by <a href="https://fred.stlouisfed.org/series/WPS081" target="_blank">119%</a>, cotton by more than 20%, and cotton yarn by 35%. Additionally, propelled by a combination of high demand and global container shortages, spot buying rates for freight from East Asia to the United States and Western Europe have jumped by up to <a href="https://xsi.xeneta.com/" target="_blank">700%</a>.</p> <p>Not only was this inflationary pressure unforeseen, but it is also the highest since 1992, with no immediate abatement in sight. It is causing major ripples in global supply chains and consequently raising many questions about how businesses should go about both preserving margin while simultaneously de-risking and future-proofing their supply chains.</p> <p>Our experience across a variety of clients, industries and geographies indicates that although not intuitive, current market volatility actually presents a genuine opportunity for manufacturers, resellers and distributors to actively restructure their supplier relationships in ways that will remedy the short-term margin squeeze, drive significant savings and maintain supply continuity.</p> <p><a href="https://events.sig.org/en/2021-global-executive-summit-4a3N4zjo0f/sessions?t=202110111800" target="_blank"><img alt="Global Executive Summit 2021" src="https://futureofsourcing.com/sites/default/files/SIG%20Global%20Executive%20Summit_Fall%202021.png" style="width: 280px; height: 268px; float: right;" /></a></p> <h2>Disaggregate Cost Components</h2> <p>When executing strategic sourcing projects (particularly in a period of hyperinflation), achieving visibility into suppliers&rsquo; cost structures almost always delivers major insights, which in turn informs negotiations strategies. This involves thoughtfully designing RFPs that require suppliers to disaggregate different cost components of the finished product and to help us understand their individual impact on the total unit cost.</p> <p>Examples of these cost components include raw materials or commodities, manufacturing, labor, packaging, freight, and duties by subassembly and end product. By differentiating the core, commodity-dependent, standardized components from the value-add, competitively source-able, commodity-independent components, it is possible to paint a clearer picture outlining the cost components that cannot be controlled and highlighting the controllable cost components.</p> <p>This isolating of components and transparency during competitive RFPs challenges suppliers to sharpen their pencils on the controllable portions of their costs, while having faith that buyers understand certain index-based portions cannot be lowered.</p> <p>For example, certain fasteners may have 30% of their costs driven by steel prices. Although the raw material price has risen rapidly in recent times, the value-add costs (such as machining, labor, overhead) have not seen much of a knock-on effect.</p> <p>This also applies to freight, where we are currently seeing major price hikes. Our research shows that manufacturers that were used to paying $2,000 to $3,000 for a 40-foot container are now paying upwards of $10,000.</p> <p>Disaggregating global market-driven cost components like raw materials and freight helps assure the most advanced negotiations and protections as the market prices swing. It also enables buying teams to zero-in on the value-add portions of unit costs, making price negotiations more targeted and efficient while simultaneously equipping buyers with the tools to future-proof themselves from fickle market conditions.</p> <h2>Review and Rethink Supplier Partnerships</h2> <p>In a typical spot-buying environment, companies switch between multiple suppliers that offer the lowest prices as often as needed. While this practice appears to be cost effective, it fails to solve for market conditions that drive price volatility, and in fact, breeds long-term instability in supplier relationships.</p> <p>In spot buying environments, buyers receive quotes from suppliers based on the perceived value of their own capacity at that point in time as opposed to receiving preferred pricing consistently by developing deeper supplier relationships.</p> <p>Challenging market conditions present a valuable opportunity to review and rethink how the supplier base is organized, as part of preferred supplier arrangements designed to leverage scale, assure supply and balance pricing.</p> <p>Using a competitive and comprehensive process designed to uncover underlying cost components, a small set of preferred suppliers should be identified, based on their prices, quality, capacity, expertise and reliability. The supplier group would then bid for individual purchase orders on a sprint basis. Ideally, preferred supplier arrangements should last at least 12 to 18 months and have clear visibility of total potential and expected volumes.</p> <p>Firstly, cash flow predictability driven by preferred supplier arrangements will help suppliers to properly plan their capacity allocation across their customers. Secondly, this will enable suppliers to offer dynamic, best-in-class pricing within a tighter range, even accounting for material index movements. Thirdly, by deepening supplier relationships, buyers can, to a great extent, insulate themselves from potential price gouging by suppliers or be prioritized when there are materials shortages, thus building a healthier and more resilient supply chain.</p> <p>Buyers should also consider developing more local in-market supplier relationships at this time. Depending on the items being procured from third parties, the total cost and demand volatility may have tilted the balance more towards local suppliers. For example, a U.S. food manufacturer that traditionally sourced all its garlic from China is now sourcing from California, thereby mitigating supply risk while keeping its production cost per pound competitive.</p> <p>By communicating a clear preferred supplier strategy, businesses will send the message that they are committed to working on mutually favorable terms, sharing in the ups and downs. We have found that this approach keeps suppliers engaged, fosters a partnership-based business environment, and maintains fair competition between preferred suppliers.</p> <p>As another example, a U.S.-based client in the metal component manufacturing and distribution space has been able to better withstand spikes in steel prices by substantially consolidating their spend with preferred suppliers. This has allowed them to remain competitive in the market, improve EBITDA by 4% and ensure supply continuity throughout all of 2021 while many of their key competitors incurred delays and product shortages.</p> <h2>Leverage Market Insights to Optimize Pricing Responses and Margin</h2> <p>In addition to these execution-focused levers, it is also vital for purchasing and sales teams to be closely linked in this highly volatile market. Purchasing teams can strengthen their commodity strategy through use of stronger market intelligence and can reinforce the company&rsquo;s position by sharing this knowledge and expertise with sales teams.</p> <p>To this end, we have worked with several clients across industries ranging from highly engineered automotive parts to relatively simple, commoditized items to create a market intelligence cockpit for sales and purchasing teams to consolidate and leverage market knowledge to drive profitable sales.</p> <h2>Final Thoughts</h2> <p>Complexity and change always breed opportunity. In our highly interconnected trade and supply-chain ecosystems, the continuously evolving challenges surrounding hyperinflation will continue to loom, with no abatement in sight at least until March 2022 (best-case scenario).</p> <p>Designing and executing projects by identifying the right impact levers and developing strategic relationships with a curated list of trusted supplier-partners is a powerful way to turn uncertainty into a tactical advantage and tangible financial benefit.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/inflation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Inflation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supplier-relationship-management-srm" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Relationship Management (SRM)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/hyperinflation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Hyperinflation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Strategic Sourcing in a Hyperinflationary Environment - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/strategic-sourcing-in-a-hyperinflationary-environment"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 08 Jul 2021 18:05:19 +0000 Apurva Nair 2026 at https://www.futureofsourcing.com https://www.futureofsourcing.com/strategic-sourcing-in-a-hyperinflationary-environment#comments Surprise, Surprise: Procurement Has Yet to Solve Its Data Challenges https://www.futureofsourcing.com/surprise-surprise-procurement-has-yet-to-solve-its-data-challenges <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Procurement%20Has%20Yet%20to%20Solve%20Its%20Data%20Challenges.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Procurement%20Has%20Yet%20to%20Solve%20Its%20Data%20Challenges.png" title="Procurement Has Yet to Solve Its Data Challenges" class="colorbox" rel="gallery-node-1952-IpjgJjHT8uo"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Procurement%20Has%20Yet%20to%20Solve%20Its%20Data%20Challenges.png?itok=BaCKi4V6" width="624" height="325" alt="Procurement Has Yet to Solve Its Data Challenges" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Surprise, Surprise: Procurement Has Yet to Solve Its Data Challenges</h1> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p><a href="https://logicsource.com/" target="_blank">LogicSource</a> and <a href="https://sig.org/" target="_blank">Sourcing Industry Group</a> recently conducted a joint procurement technology survey. The results revealed some consistent, yet alarming, trends in procurement spend analytics. In short, responses made it apparent that procurement organizations at-large have yet to solve their spend data quality challenges.</p> <p>Three key findings from the survey indicate the market&rsquo;s need for more expertise and ongoing data services as it relates to procurement spend analytics:</p> <p style="margin-left:1in;">●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66% of respondents know that they need to improve spend data quality</p> <p style="margin-left:1in;">●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 34% of respondents cite data is not actionable, accurate or up to date</p> <p style="margin-left:1in;">●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 28% of respondents have no spend analytics tools or processes</p> <h2>Seize the Opportunity to Lead Strategically</h2> <p>Now is an opportune time for procurement leaders to address spend data quality issues. After the extraordinary work of procurement teams throughout the pandemic, the positive organization-wide sentiment should allow procurement leaders to strategically transform their analytics categorization, normalization and enrichment. Business stakeholders expect clean, accurate and current spend analysis. By taking the time to understand the necessary changes and improvements to your spend management process and related tools, you can empower your team to achieve an even higher level of data quality and performance.</p> <p><strong><em>&ldquo;Spend analytics will have a critical role not only in helping leaders monitor and improve cash and cost, but also in transforming and improving existing practices to create a more resilient future.&rdquo; - </em></strong><strong><a href="https://www.mckinsey.com/business-functions/operations/our-insights/the-role-of-spend-analytics-in-the-next-normal" target="_blank">The role of spend analytics in the next normal, McKinsey &amp; Company, August 2020</a></strong></p> <p>The above quote drives home the point that new finance mandates will oblige procurement organizations to take responsibility for implementing formal spend analytics initiatives and a sustainable process to maintain the data accuracy, quality and normalization on a monthly basis. In the past, this type of program was deemed &ldquo;nice-to-have&rdquo; feature and has now been transformed into a &ldquo;must-have&rdquo; feature. Consequently, procurement has found itself scrambling to find the resources to either build internal capability and/or purchase spend analytics technology.</p> <p>In the same McKinsey report noted above, it&rsquo;s stressed that procurement leaders must improve and transform their internal structures to support quality spend data management, so that they can be agile in times of crisis. Moreover, these same leaders are struggling to keep up with the increased demands of delivering more value quicker, supporting supply-chain sustainability, implementing value delivery levers that are specific to category, company and sector content, while managing their operations virtually. As a result, implementing a monthly &ldquo;ingest to publish&rdquo; process to maintain accurate and actionable spend data &ndash; as well as enriching spend analytics technology with additional dimensions &ndash; needs to be a top-five priority.</p> <h2>Partner with Experts</h2> <p>Many procurement leaders are strapped when it comes to building internal spend management solutions and typically do not have the time, expertise or budget. Likewise, procurement leaders can&rsquo;t afford to divest their already-limited resources to another project that will need to be rigorously maintained and requires more overhead.</p> <p>The &ldquo;buy&rdquo; option isn&rsquo;t much better. Spend cubes are not a panacea to poor quality and stale spend data. In fact, 53% of procurement leaders found their analytics software to be expensive to support a solid business case. 45% of those leaders also agreed that there is a lack of internal expertise to manage the process and the reporting.&nbsp;</p> <p><em>The reality is, spend analytics technologies are never going to live up to hype or business case if it is not delivered with expert data services, which vigilantly, on a monthly basis, ensures the integrity and accuracy of the data has been put through a tight quality assurance process.</em></p> <p>The change required to transform how you manage your spend data starts at a micro level. The first step involves a rigorous data cleanup to create the right categorization, normalization and business rules. Second is deciding on what data you want to track for enrichment opportunities, such as chart of accounts, contract information and supplier parent/child relationships to name a few. Third, partner with spend analysis experts who can quickly support you on this journey and execute the monthly process to maintain accurate, actionable and timely reporting.</p> <p>Other key questions procurement leaders need to ask include:</p> <p style="margin-left:1in;">●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Do we have transparency in our spending beyond supplier-level data?</p> <p style="margin-left:1in;">●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Is our data categorization, normalization, and enrichment mature enough to support our team&#39;s ability to trust the spend data and discover strategic sourcing projects?</p> <p style="margin-left:1in;">●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Can we easily track and report on accurate supplier parent-child relationships?</p> <p style="margin-left:1in;">●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Can you enrich your data to track your supplier diversity partners to ensure you are meeting and/or exceeding your targeted goals?</p> <p>All procurement value creation must start and end with actionable and highly accurate spend data that delivers insights to elevate your team&rsquo;s ability to identify new savings and spending reduction opportunities on an ongoing basis.</p> <p>As we find our way out of the pandemic, the first half of 2021 is a fortuitous time to focus on and invest in building a mature spend analytics function. It will play a critical role not only in helping the business manage and improve cash and spending, but it will also empower procurement to improve easy access to actionable, accurate, and timely supplier recommendations and decision-making</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/spend-analytics" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">spend analytics</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital-transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital Transformation</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/value-creation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">value creation</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Surprise, Surprise: Procurement Has Yet to Solve Its Data Challenges - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/surprise-surprise-procurement-has-yet-to-solve-its-data-challenges"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 26 Mar 2021 02:00:00 +0000 Sam Vail 1952 at https://www.futureofsourcing.com https://www.futureofsourcing.com/surprise-surprise-procurement-has-yet-to-solve-its-data-challenges#comments A Look Back on 25 Years: Key Procurement Milestones and What’s Next https://www.futureofsourcing.com/a-look-back-on-25-years-key-procurement-milestones-and-whats-next <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/25%20years%20of%20procurement%20%281%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/25%20years%20of%20procurement%20%281%29.png" title="There’s no doubt 2021 will be a pivotal year for every business. As we think about what’s next for the procurement function, let’s first appreciate how far we’ve come. " class="colorbox" rel="gallery-node-1904-IpjgJjHT8uo"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/25%20years%20of%20procurement%20%281%29.png?itok=7sACk4_1" width="624" height="325" alt="There’s no doubt 2021 will be a pivotal year for every business. As we think about what’s next for the procurement function, let’s first appreciate how far we’ve come. " title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/seven-steps-to-progressing-artificial-intelligence">Seven Steps to Progressing Artificial Intelligence</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Twenty-five years ago, the internet was in its dial-up infancy, businesses still relied on fax machines and procurement was considered solely a back-office, cost-cutting function that controlled the organization&rsquo;s purse strings.</p> <p>But times have certainly changed. This past year alone has proven procurement plays a key role in organizational resilience. Due to COVID-19, teams have had to navigate some of the most widespread and severe supply disruptions and cash issues we&rsquo;ve seen in decades. Many have stepped up to meet society&rsquo;s call for greater inclusivity, strengthening relationships with diverse supply partners.</p> <p>There&rsquo;s no doubt 2021 will be a pivotal year for every business. As we think about what&rsquo;s next for the procurement function, let&rsquo;s first appreciate how far we&rsquo;ve come.</p> <h1>Making Moves: From Tactical to Strategic</h1> <p>Modern procurement was born when FreeMarkets conducted the first online reverse auction in 1995. While auctions, like strategic sourcing and category management, were already established concepts, the real-time competition enabled by technology completely shifted sourcing mentality. No longer bound by sealed bids, suppliers had greater chances of winning business, and buyers had more product and material options from which to choose.</p> <p>At first, online reverse auctions focused on price and essentially ignored other competitive factors, such as quality, lead-time, capacity, value, sustainability and more. Before long, the industry realized making the right sourcing decision goes far beyond cost. Platform providers expanded capabilities to take all supply considerations into account.</p> <p>The development of sourcing optimization helped buyers make the best possible decision for their business, based on their unique constraints, criteria and rules. This advancement opened up the opportunity for procurement teams to become even more strategic and intentional. As AI sourcing optimization models have been built upon and become more sophisticated, adapting to buyer preferences and using that information to identify new scenarios, evaluate the strength of supplier bids, address complex categories and guide users to an ideal solution, procurement leaders are now in a strong position to advance the organization&rsquo;s goals intelligently.</p> <h1>Changing Perception: Procurement Isn&rsquo;t Just About &ldquo;Buying Things&rdquo;</h1> <p>With technology incrementally expanding procurement&rsquo;s reach and value, the function has progressively become instrumental to a number of organizational initiatives, even solidifying its spot at the executive table with the role of Chief Procurement Officer.</p> <p>The biggest benefit of procurement&rsquo;s digital evolution is increased agility. The function is much better equipped to adapt and solve problems through the most unprecedented disruptions. This type of flexibility has proven vital throughout the global health and economic crisis as healthcare organizations have had to get personal protective equipment and other critical suppliers in the door quickly. Meanwhile, higher education establishments have had to shift and manage successful procurement, payment and teaching environments remotely.</p> <p>Fueled by the gravity of issues like climate change and social inequity, a growing number of companies have redefined their commitments to social impact with procurement playing a starring role. In 2012, the Social Value Act required public sector organizations in the U.K. to consider economic, social and environmental well-being in their public service contracts, but also put forth the idea that procurement has the power to improve societal outcomes.</p> <p>Consumer and societal pressure on private sector companies to behave responsibly and &ldquo;do the right thing&rdquo; is also mounting. Many procurement leaders today carry out this purpose through transparent, ethical, equitable, and sustainable practices that protect communities and support supply partners while driving the business forward.</p> <p>Procurement has tremendous purchasing power that can advance corporate commitments, reduce risk, drive process innovation, foster diversity, create positive social impact, protect the environment and so much more. As we head into 2021 facing ongoing uncertainty and new challenges to solve, there&rsquo;s incredible professional and organizational opportunity for teams that lead the charge.</p> <h1>Automation: Procurement&rsquo;s Next Frontier?</h1> <p>Over the years, we&rsquo;ve seen technology and world events help drive the transformation of the procurement function, but its evolution is far from finished. In fact, automation, AI, and embedded intelligence are already advancing sourcing and spend management practices and laying the groundwork for a truly digital procurement function in the next five years.</p> <p>Imagine that one day you are in your office and you say &ldquo;source.&rdquo; Several weeks later, you are notified that a contract for exactly what you need is ready for review and signature. Your procurement system automatically selected the products or services for sourcing, confidently predicted and invited suppliers to the table, chose the criteria that should be most heavily weighted for evaluation and managed the sourcing event (including constraints, negotiation criteria and more) all without the need for human intervention.</p> <p>Sound unsettling or too aspirational? Maybe, but it won&rsquo;t soon.</p> <p>Autonomous procurement, where an intelligence system learns from humans, adapts its behavior, and learns new tasks and how to respond in specific situations like a seasoned procurement professional , is within reach.</p> <p>Does that mean humans have no future role in procurement? Not at all. Just as a plane on autopilot still requires a pilot to monitor the route and program changes as necessary, autonomous procurement will need procurement professionals to strategically manage the operation. The human component will continue to exist but will be augmented with technology so professionals aren&rsquo;t bogged down with manual interventions that machines can perform. Instead of verifying certain criteria exist before signing off, procurement teams can focus on the work that&rsquo;s most valuable and appropriate for them to do.</p> <p>The next frontier for procurement will be much more predictive and proactive, empowering teams with more capacity to focus on the strategic initiatives their organizations and society need them to drive. Whether its collaborative supplier relationships, cross-industry alliances, or applying AI and machine learning to manage broader risk management initiatives, humans will manage the autonomous procurement framework as opposed to the underlying details. To obtain autonomous procurement, organizations need to double down on making sure their data is clean, complete, accurate and available, as this information is the foundation.</p> <p>Procurement has always been called upon to meet the business community and society&rsquo;s changing needs and it has risen to the occasion every time. The past 25 years have dramatically shifted the role of procurement and created new opportunities for more effective business practices, supplier relationships and more.</p> <p>As we look ahead to a new wave of technological advancement through greater automation and renewed focus on equity, ethics and impact, procurement will become even more strategic and able to navigate the future landscape with the utmost agility.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/risk-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/intelligent-automation-ia" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Intelligent Automation (IA)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="A Look Back on 25 Years: Key Procurement Milestones and What&amp;rsquo;s Next - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/a-look-back-on-25-years-key-procurement-milestones-and-whats-next"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 04 Jan 2021 22:46:04 +0000 Jim Bureau 1904 at https://www.futureofsourcing.com https://www.futureofsourcing.com/a-look-back-on-25-years-key-procurement-milestones-and-whats-next#comments The Case for Changing the Chief Procurement Officer Role https://www.futureofsourcing.com/the-case-for-changing-the-chief-procurement-officer-role <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Chief%20Procurement%20Officer%20%281%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Chief%20Procurement%20Officer%20%281%29.png" title="Within your organization, have an open dialogue to explore how Procurement and the CPO role can evolve. " class="colorbox" rel="gallery-node-1862-IpjgJjHT8uo"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Chief%20Procurement%20Officer%20%281%29.png?itok=MLOsQbWt" width="624" height="325" alt="Within your organization, have an open dialogue to explore how Procurement and the CPO role can evolve. " title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/from-procurement-police-to-the-chief-partner-officer">From Procurement Police to the Chief Partner Officer</a></div><div class="field-item odd"><a href="/guide-your-artificial-intelligence-solution-with-a-proof-of-concept">Guide Your Artificial Intelligence Solution with a Proof of Concept</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <h1><strong>Procurement Sentiment and Observations</strong></h1> <p>During this pandemic, many organizational CEOs and Board members have become aware of and startled by the inefficiencies and bureaucracies in their Procurement organizations. C-suite executives discovered their organizations were in predicaments with deep and broad implications none of us had previously fathomed. Most of us never imagined we&rsquo;d need to find new suppliers, support, or transition from current ones to diversify for business continuity at the drop of a hat.&nbsp;</p> <p>Frequently, business leaders also found themselves working through Procurement bottlenecks and realized the function wasn&#39;t prepared to respond. Businesses struggled to be reactive at best.</p> <p>Over the years, many Procurement organizations had expanded responsibilities for Supplier or Vendor management. With an overreliance on Procurement to solve critical business problems, inefficiencies were created.</p> <p>Unsurprisingly, this view of Procurement is not new and has been prevalent in organizations for so long, it is practically ingrained. However, with 2020&rsquo;s upheaval, it stung deeper.</p> <p>Neither the business stakeholders nor the supplier community were satisfied with the procurement engagement model or processes.</p> <p>Still dealing with it during the pandemic disruptions, these grumbles reached the ears of the CEO. With this backdrop, those who have been navigating Procurement inefficiencies are hopeful things may finally change.</p> <p>However, they remain fearful this may give rise to more bureaucracies in Procurement. Suppliers and business teams have already encountered more Procurement requirements due to this pandemic, but without thoughtful considerations of how to address the concerns and streamline the process effectively.</p> <h1><strong>The Perceived Value of Procurement</strong></h1> <p>Throughout my career, I have been asked why Procurement exists. What value does Procurement bring? Why is this function so slow and reactive? Why hasn&#39;t Procurement evolved or become more efficient? Those are fair questions.</p> <p>Holding responsibilities for end-to-end Procurement from Procure to Pay, Strategic Sourcing, Risk Management, Vendor Management, and everything in between, I and other talented Procurement professionals have questioned these very same things. Yet, it is difficult to admit the root cause of the problem because it is an inconvenient truth.</p> <p>The trouble lies heavily with the Chief Procurement Officer role, which, by design, is installed with the premise to show less willingness to change the status quo. Some companies have added tools and vastly increased procurement team sizes, with an added scope of responsibilities, over the past decade. These have not reduced the stakeholder grumblings, brought effectiveness, or gained efficiencies for the most part.</p> <h1><strong>How Did We Get Here?</strong></h1> <p>Too often, the business only engages our teams at the last minute to usher the paperwork quickly after their favorite supplier is selected. This behavior makes the Procurement function seem ineffective.</p> <p>You will hear well-justified arguments that CPOs are mere stewards of running processes required by other functions such as Finance, Risk, Legal, or Compliance. You will also catch that while we are not responsible for these processes, we are held accountable. We will also state, and rightfully, that appropriate investments aren&#39;t being made in Procurement for it to evolve as there is no support. So, CPOs have had no choice but to agree to continue the status quo.&nbsp;</p> <p>The business and supplier teams will passionately argue Procurement doesn&#39;t know how to partner. They believe Procurement only cares about the lowest price and lacks business knowledge. They know the function as a mere &quot;checks the box&quot; and don&rsquo;t understand the department&rsquo;s true value. Stakeholders view it as a bureaucracy slowing the business down.</p> <p>Let&#39;s face it&mdash;Procurement hasn&rsquo;t been popular for a long time.</p> <p>Those selected to helm it must be willing to fight the stakeholders with a big bark and an even bigger bite. When you peel the onion back a bit, it&#39;s easy to recognize the Procurement approach of operating without a partnership with the business or supplier community has led to distrust. This explains why the function is hard-pressed to find cheerleaders for it.</p> <h1><strong>Myopic Value of Procurement</strong></h1> <p>Look closer and you will see a dynamic that plays into an opaque behavior of a Procurement leader.</p> <p>Having spent most of my career in these roles, I found that Procurement moving under Finance has been detrimental to the function and reputation. Finance professionals helming Procurement and Vendor Management responsibilities over the past decade have created metrics and knowledge misalignment, leading to further mistrust.</p> <p>When Procurement approaches with a lack of partnership or domain knowledge, it continues to perpetuate the &quot;divide and conquer&quot; sales tactics successfully with the business teams. The approach has increased organizational risks and costs for all sides.&nbsp;</p> <p>The &quot;keeping things status quo&quot; or &quot;bite before they do&quot; approach is something I never felt was right. For the &quot;Finance leader or CPA&quot; installed to oversee Procurement or Vendor management processes, it is a job without passion and typically ends up being either a stepping-stone to their next role or the last one before they retire. Regardless, it has resulted in a myopic mindset of savings, budget management, and compliance.</p> <p>McKinsey &amp; Company&rsquo;s <a href="https://www.sdcexec.com/sourcing-procurement/press-release/21138157/mckinsey-company-do-you-know-what-your-procurement-function-canand-cantdo" target="_blank">Global Procurement Excellence survey</a>&nbsp;reveals the gap between leaders&#39; mindsets and followers&#39; becoming even more pronounced.&nbsp;</p> <p>Procurement, often the lowest priority for functional budget allocation, makes a significant impact on the top and bottom lines of any organization and its reputation. The cost equation to keep in mind is much more than the annual ~1% budget allocation for this function.</p> <p>This &quot;low budget&quot; function mindset has resulted in Procurement lacking visionary leaders willing to evolve it. Procurement teams have become transactional to &quot;pick up pennies from the floor while leaving dollars on the table.&quot; This makes it near impossible to be strategic and gain a seat at the table.&nbsp;</p> <p>Until the Finance procurement overseers are held accountable to different metrics related to automation and value-added delivery through partnership, we will not see Procurement&#39;s transformation. When the reward system and leadership mindset are focused on budget and compliance metrics, value-based deal approaches will be hard-pressed to find. There will be a continued preference for looking at negotiations and deals from a &quot;rear-view mirror.&quot;&nbsp;</p> <h1><strong>Creating Sustainability for the Long-term</strong></h1> <p>I have witnessed Finance procurement overseers push their teams for unreasonable deal structures. Usually, through a talking point, &quot;because we are X,&quot; and &quot;every supplier wants to do business with us&quot; mindset.</p> <p>While it is safe to assume most suppliers want the work, they also need to be profitable and there for us when we need them. If they are deprived of &quot;fair margins,&quot; they won&#39;t be around to assist when needed.</p> <p>The Procurement overseer must be mindful of embracing processes that allow both the Procurement and business teams to quickly ascertain where the risks and fair margins are from market dynamics. Often, suppliers help the organization because of the relationships they have built and not because of the Procurement established processes.</p> <p>Isn&#39;t partnership building what the CPO or any leader should be doing with their stakeholders across all levels, suppliers, and teams? Procurement&rsquo;s function should be partnership building with a &quot;trust but verify&quot; approach to succeed. The lowest price doesn&#39;t necessarily equate to the best quality or the ability to deliver on commitments made by suppliers consistently. The latter two only come through building genuine, well-meaning relationships with streamlined processes that are transparent and benefit both sides fairly and equitably.</p> <p>I have seen wildly successful outcomes on deals when there is an open and joint partnership approach between Procurement, internal business partner, and supplier sales teams. For years, I have advocated the method of asking our suppliers for an &quot;unreasonable number of reasonable things&quot; instead of a reasonable number of unreasonable things. However, these enormously successful outcomes are only possible when all teams involved are open to transparency and embrace leading with trust and partnership.</p> <h1><strong>Reflective Thoughts</strong></h1> <p>If your organization hasn&#39;t had the same challenges with the Procurement function, congratulations! Organizations with forward-thinking and proactive Chief Partner Officers measured on value and automation-based metrics are well ahead of their peers.</p> <p>As a CEO, C-suite, or Board member, if you are ready to transform Procurement, it will be critical to keep partnership, automation, and AI as foundations. It can reduce your costs by 10% - 40% while boosting execution speed.</p> <p>To gauge Procurement engagement and sentiment, I would welcome participation in this&nbsp;<a href="https://www.surveymonkey.com/r/YTL7HJ3" target="_blank">Sourcing Industry Group</a>&nbsp;poll to help advance insights on Procurement transformation opportunities.</p> <p>Within your organization, have an open dialogue to explore how Procurement and the CPO role can evolve. Increasing transparency in the Sales and Procurement cycle are also beneficial for this transformation.</p> <p>If your organization is considering transforming Procurement, I invite you to read Part 2 of this article (forthcoming). Don&#39;t hesitate to reach out if your organization is looking for ideas on how you can transform the end-to-end Procurement process value chain.&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sustainability" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sustainability</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/chief-procurement-officer-cpo" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Chief Procurement Officer (CPO)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procure-to-pay-0" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procure to Pay</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/risk-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/vendor-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Vendor Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/artificial-intelligence-ai" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Artificial Intelligence (AI)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The Case for Changing the Chief Procurement Officer Role - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/the-case-for-changing-the-chief-procurement-officer-role"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Wed, 30 Sep 2020 16:19:41 +0000 Purvee Kondal 1862 at https://www.futureofsourcing.com https://www.futureofsourcing.com/the-case-for-changing-the-chief-procurement-officer-role#comments A Brave New Supply Chain World https://www.futureofsourcing.com/a-brave-new-supply-chain-world <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2817%29.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2817%29.png" title="World Supply Chain" class="colorbox" rel="gallery-node-1734-IpjgJjHT8uo"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2817%29.png?itok=E-GpuDOM" width="624" height="325" alt="World Supply Chain" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/three-supplier-conversations-you-need-to-have-now">Three Supplier Conversations You Need to Have Now</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>To understand long-term transformations in supply chain and procurement technology, supply chain professionals must be able to understand present trends so they can help shape future realities. Experts believe the following predictions are viable hypotheses that we should consider for 2030.</p> <h1>Predicting the Strategic Sourcing Technology Landscape in 2030</h1> <p><strong>1)</strong>&nbsp;&nbsp;&nbsp;&nbsp; <strong>Increase in Population:</strong> In 2030, there will be more people seeking cultural and political self-determination, financial stability and personal self-actualization. Population growth means more economic activity and expanded production capacity.This also creates a greater need for food, water, healthcare, housing and education.</p> <p><strong>2)</strong>&nbsp;&nbsp;&nbsp; <strong>Extreme Weather: </strong>In 2030, the upper atmosphere will have warmed significantly. This so-called &ldquo;Greenhouse Effect&rdquo; will create more extreme weather. Because of hotter summers, colder winters and lethal storms, agricultural zones will be forced to shift. Fresh water will become more expensive.</p> <p><strong>3)</strong>&nbsp;&nbsp;&nbsp; <strong>Rising Populism and Nationalism:</strong> In 2030, more people will gravitate to populist and nationalistic movements and build political coalitions. For culture, this means that membership in clubs, societies, unions and professional networks will become more important.It also &nbsp;means that these organizations will more explicitly identify with economic and geopolitical agendas. For policy, it means that we can expect more tariffs, more walls and more trade disputes.</p> <p><strong>4)</strong>&nbsp;&nbsp;&nbsp; <strong>More Refugees:</strong> In 2030, the number of people displaced by extreme weather and rising sea levels will have massively increased, while the number of countries willing to host refugees will decrease. Stateless and displaced people will continue to become economic migrants in wealthier countries and will struggle to claim recognition and political power.</p> <p><strong>5)</strong>&nbsp;&nbsp;&nbsp; <strong>More Real-Time Data, More Real-Time Accountability:</strong> In 2030, the largest driving force for change will be the consumers, businesses and shareholders in wealthy countries who have access to data. These groups of people will be skeptical of business claims and will hold companies accountable by voting with their dollars. Consumer and shareholder activism will increase, in some cases driven by viral online outrage events that reverberate through vast global social networks.</p> <p>This is a world where the stakes of business success cannot be overestimated, particularly when it comes to the supply chain. Based on these predictions, being bullish on complexity, chaos, ubiquitous data, ubiquitous computing from a management perspective and ubiquitous feedback loops (real or simulated) will be essential for supply chain success.&nbsp;</p> <p>Consumer opinion and preference will move from analysis of abstracted trends to analysis of large numbers of real people using connected devices in real-time. Companies will be expected to know the physical location of all inventory and shipment arrival time.</p> <p>Wireless sensor networks (WSN) in logistics will automatically optimize lanes, allowing real-time response to weather events, changes in tariffs and current events. Business operations will live at the speed of the 24-hour news cycle and will be expected to take advantage of changing circumstances.</p> <p>Procurement teams will be consultant strategists, analyzing and acting on large datasets concerning real-time demand and changes in the market. They will work with outsourced customer service teams to process buying requests in compliance with approval processes.</p> <h1>Predicting Strategic Sourcing Technology in 2030&nbsp;&nbsp;</h1> <p><strong>1)</strong>&nbsp;&nbsp;&nbsp;&nbsp; <strong>Category-Focused B2B Marketplaces Using Hyperdynamic Pricing: </strong>Hyperdynamic pricing, driven by AI, is used today by travel websites like Expedia and Hopper. The price is updated in real-time relative to breaking news and responsive to buying patterns. For example, if a music festival announces a new location, plane tickets to that location may quickly become more expensive. In 2030, Hyperdynamic pricing engines, based on large-volume B2B marketplaces, will become the norm for most categories of spend.</p> <p><strong>2)</strong>&nbsp;&nbsp;&nbsp; <strong>Cradle to Grave ESG Supply Chain Accountability:</strong> Corporate leaders, in solving the supply disruptions caused by bullwhips, can leverage demand to make price changes; however, with great power comes great responsibility. In 2030, as corporate boards respond to consumer concerns about deforestation, human slavery, and limiting exposure to infectious diseases or neurotoxic contaminations, the supply chain will come under greater scrutiny. It will also be a driving force that moves the ESG numbers shareholders care about.</p> <p><strong>3)</strong>&nbsp;&nbsp;&nbsp; <strong>The Customer as Procurement Stakeholder:</strong> Think about how data moves through most enterprises today: customers buy things through a website. That data goes to business analysts, to sales, to operations, then to suppliers. As more businesses move to customized, made-to-order inventory, because of process mapping and mining, pressure is put onstakeholders to represent the voice of the customer.</p> <p>In 2030, new data pipelines will enable customers to generate the specifications, evaluate the criteria, and establish the requirements for selecting and managing suppliers. As consumers become more data-driven in their buying habits and more particular about customization, brands will scramble for tools that can incorporate consumer participation directly into their supply chains through interactive web portals.</p> <p><strong>4)</strong>&nbsp;&nbsp;&nbsp; <strong>Strategic Suppliers as Fully Integrated Partners: </strong>In 2030, as data from connected devices becomes more readily available and deliverable to ubiquitous interfaces, supplier partners will be brought further along into real-time visibility of sensitive operational data. As videoconferencing, distributed and remote workforces, and work-from-home cultures become normalized, more firms will use both a contingent workforce and integrated suppliers. They will operate more like part of the company&rsquo;s internal team than as an external party.</p> <p><strong>5)</strong>&nbsp;&nbsp;&nbsp; <strong>Sourcing Events: </strong>There is supported business evidence that sourcing events add value to a company. In 2030, they will become far more common. Sourcing events will have an arms race effect on CPOs buying the latest and greatest in digital sourcing technology. CPO&rsquo;s will want to arm their category teams so that they are buying the latest and greatest CRM, targeted prospect research, and lead nurturing tools. CFOs will insist on a minimum number of sourcing events per year. Still, CMO&rsquo;s, alongside corporate boards, must demand that procurement delight consumers with suppliers that can deliver on the company&rsquo;s ESG goals. Sourcing event networking is the key.</p> <h1>Betting on Innovation</h1> <p>Predictions are, by their very nature, uncertain. A lot can change in 10 years. Startups like ours (Bid Ops) are notoriously fast paced. Our team tends to think in 30-, 60- and 90-day cycles using annual technology roadmaps. Sometimes, however, we find it advantageous to take the time to make long-term predictions using the following inputs to correct our own inherent biases:</p> <p>1) What do forecasters tend to underestimate and overestimate?</p> <p>2) What are the current supply chain trends? How might they affect the future?</p> <p>3) What are the status quo pain points that can be solved by technology?</p> <h1>A Hopeful Future</h1> <p>There is no doubt that supply chains will look very different in 2030. It is the responsibility of procurement professionals in 2020 to know present trends and understand their impact on the future. &nbsp;We need to embrace technology, but not at the expense of humanity. We need to continue to care about diversity, sustainability and societal impact. Education is now more than ever of the utmost importance.&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/global-supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Supply Chain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/global-sourcing-procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Sourcing Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="A Brave New Supply Chain World - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/a-brave-new-supply-chain-world"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 07 Apr 2020 19:49:03 +0000 Edmund Zagorin 1734 at https://www.futureofsourcing.com https://www.futureofsourcing.com/a-brave-new-supply-chain-world#comments Reduce Supply Chain Vulnerabilities with Strategic Sourcing https://www.futureofsourcing.com/reduce-supply-chain-vulnerabilities-with-strategic-sourcing <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2813%29_0.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2813%29_0.png" title="Global Supply Chain" class="colorbox" rel="gallery-node-1724-IpjgJjHT8uo"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2813%29_0.png?itok=qM5SsarW" width="624" height="325" alt="Global Supply Chain" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>From pandemics to plant explosions, cyberthreats and scarce natural resources, the risks facing a supply base have never been so stark. Now is the time for companies to improve long-term resilience.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/the-new-age-of-iot-and-the-supply-chain">The New Age of IoT and the Supply Chain</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>As the world gets to grips with a world health and humanitarian emergency resulting from the spread of coronavirus (COVID19), the knock-on economic effects also take effect. In an increasingly global economy, we are starting to see how fragile some just-in-time supply chains have become.</p> <h1>Impacts of Disruption</h1> <p>Disruptions to industrial outputs can cause global supply chains to slow, as access to finished goods and components become constrained. As current supply agreements and strategies are challenged, there is the potential of escalating additional costs to organizations as they are forced to adapt and level out again. As we saw with COVID-19, what starts with reduced manufacturing output in China leads to depleted supplies and cancelled activities and travel across the world, meaning a wide spectrum of economic loss.</p> <p>As an example, Britain&rsquo;s largest car manufacturer<a href="https://www.independent.co.uk/topic/jaguar-land-rover" target="_blank"> Jaguar Land Rover</a> admitted in February to having flown Chinese parts to the UK in suitcases in a scramble to keep production running. The company, which makes nearly 400,000 vehicles a year at its three factories in the U.K., warned it could run out of parts in just two weeks.</p> <p>Indeed, many firms transcending all regions and sectors have experienced crippling supply chain issues as a result of the outbreak. According to <em>Fortune</em>, some 94% of Fortune 1000 companies are now seeing related supply chain disruptions.</p> <p>COVID-19 has become the latest epidemic disruption, affecting supply chains through factors including lack of access to markets, materials and importantly, staff.&nbsp; Supply chain leaders are now in the position to re-assess their approaches and put in place strategies to rapidly respond to an epidemic disruption.</p> <h1>A Trend of Mounting Risks</h1> <p>Undoubtedly, disruptions like COVID-19 have a greater magnitude today because supply chains have changed dramatically in recent years. Top threats impacting global supply chains have recently included plant explosions or fires, natural disasters, cyberthreats, distribution disturbances, government intervention, and demographic changes in workforce and logistical execution.</p> <p>In terms of dangers, the numbers speak for themselves. Resilinc&rsquo;s Annual EventWatch Report, which offers global supply chain risk event intelligence, reported a 36% increase in hazardous events in 2018. That is an average of seven supply chain risk events happening every day.</p> <p><em>Supply Chain Management Review</em> Editor Bridget McCrea, notes, &ldquo;Last year was the fourth-costliest year since 1980 in terms of insured losses, primarily due to an accumulation of severe and costly events in the second half of the year.&rdquo; She referenced data from Munich Re, one of the world&rsquo;s most comprehensive databases for analyzing and evaluating natural catastrophes, in its NatCatSERVICE report.</p> <p>For example, climate and geological events such as hurricanes and wildfires, continue to hinder and unravel global supply chains. In 2018, there were 850 natural disasters registered worldwide.&nbsp; Nearly half (42%) were in Asia, followed by North America with 20%, Europe with 14% and Africa with 13%.</p> <h1>Proactively Reducing Risk</h1> <p>While the threats facing procurement leaders and their supply base will likely continue to rise, the acute risk is the gaps for purchasers to find and source alternative suppliers quickly and to accurately navigate a challenged supply chain.</p> <p>Returning to the example of Jaguar Land Rover, <em>The Times</em> reported in February that the company also planned to cease production of the I-Pace electric SUV for one week because of a battery shortage at supplier LG Chem. It reported this was at least the third time that a battery shortage at LG Chem has affected the production of an electric vehicle.</p> <p>Shortage-fueled supply chain delays like the one JLR has experienced help illustrate that the big, multibillion-dollar plans manufacturers make for their products are only as sound as the suppliers they rely upon.</p> <p>In a recent webinar hosted by scoutbee, Dan Mahlebashian, the former Global Executive Director &amp; Chief Contracting Officer of General Motors, described the tedious, manual, time-intensive work procurement workers face in identifying and sourcing suppliers. This archaic approach to strategic sourcing remains the bottleneck limiting proactive strategic procurement for most organizations as they are constantly locked in reactive mode.</p> <p>So what actions should procurement leaders and their teams take?</p> <p>With COVID-19, many companies have enacted crisis management plans as part of a wider business continuity approach and a fast-changing situation means many are still focused on their immediate response. However, what should follow is organizations acting tactically to improve long term resilience. In fact, technology now offers both greater capability during instability and a better long-term position from which to face future events.</p> <h1>AI, Big Data and the Cloud to Digitize Supplier Scouting</h1> <p>Advanced technologies like artificial intelligence (AI),machine learning (ML), and cloud-based applications can provide unified information and inputs to identify suppliers faster, more strategically and with more resilience.</p> <p>&ldquo;Spend better and buy better&mdash;that&rsquo;s the job of procurement,&rdquo; Mahlebashian says. He cautions that only managing the &ldquo;buying&rdquo; imperative opens up additional risks<span style="font-size: 13.008px;">&mdash;</span><span style="font-size: 13.008px;">like paying too much, late shipments, inventory not aligned with consumption and demand forecasts.</span></p> <p>The most innovative procurement leaders are now exploring AI-powered scouting technology. These tools help users to find, evaluate, vet and on-board suppliers globally for direct or indirect materials with greater speed and confidence.&nbsp;</p> <p>Digital scouting platforms use constantly curated supplier information along with market data and can provide hundreds of data points on any vendor at the click of a button. Knowing more about your supply base, you can respond with agility to changing demands, and dynamically manage your category, pricing benchmarks and alternative suppliers.</p> <p>In responding to crises, AI scouting technology now offers a shortened discovery and validation process with rapid access to financials, corporate and geographic news, corporate sustainability data along with active certifications. Users also gain visibility into critical certifications along with the ability to search across all your suppliers for specific data and information to sift through vast amounts of data quickly.</p> <h1>Source the Best &mdash; From Far and Wide with AI</h1> <p>With digital tools, procurement professionals can outline their scouting needs in as little as one hour. You can cast a wider digital net to identify all the potential suppliers, both current and potential, for your project. What normally takes months to find, validate and select a new supplier can now be done in a matter of weeks&mdash;ensuring you have the broadest view of the market.</p> <h1>Stronger Sourcing Decisions Using Unified Data</h1> <p>Review, pre-screen and develop the target list of suppliers to validate in about an hour, making it simple to review a wider set of potential suppliers with relevant details and a more holistic view. Given the larger set of potential candidates supplier discovery tools deliver, they also organize and help prioritize best-fit potentials to speed up the entire evaluation process.</p> <h1>Collaborate Rapidly</h1> <p>Reducing the friction between supplier selection and on-boarding is a catalyst in more strategic relationship management. You can use these tools to collaborate and validate suppliers through cloud-based communication channels to conduct secure conversations, eliminating redundant work or time-consuming email management.</p> <p>Embracing a scout-to-source digital process can be done in a short timeframe. Evolving a corporate mindset on procurement by evolving the true value of &ldquo;buying&rdquo; and &ldquo;spending&rdquo; more proactively is an on-going journey. The most important thing to move this mindset forward is to go full steam ahead and show people why this approach works.</p> <h1>Key Takeaways</h1> <p>As supply chains become increasingly global, and the risk factors within them greatly more diverse, the ability to manage associated risk across geographic boundaries and timezones should now be a top priority for organizations.</p> <p>Here are the top three recommendations for reducing supply chain vulnerability:</p> <ol> <li>Keep supply chains more secure through diversified supplier portfolios</li> </ol> <ol> <li value="2">Be ready and equipped to react quickly to changes and prevent disruptions to production and customers</li> </ol> <ol> <li value="3">Develop long term preferred core suppliers and/or help them to bounce back after crises or disruptions</li> </ol> <p>Digitizing the scout-to-source process enables organizations to find new suppliers with more confidence, speed and transparency. All industries can now reduce supply chain risks and disruptive effects with a strategy that leverages digital sourcing.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/risk-mitigation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Mitigation</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Reduce Supply Chain Vulnerabilities with Strategic Sourcing - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/reduce-supply-chain-vulnerabilities-with-strategic-sourcing"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 24 Mar 2020 22:27:18 +0000 Lee Galbraith 1724 at https://www.futureofsourcing.com https://www.futureofsourcing.com/reduce-supply-chain-vulnerabilities-with-strategic-sourcing#comments Procurement Is the Ultimate Guardian of Responsible Supply Chains https://www.futureofsourcing.com/procurement-is-the-ultimate-guardian-of-responsible-supply-chains <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://www.futureofsourcing.com/sites/default/files/articles/Sustainable%20Procurement%20Pledge.png"><a href="https://www.futureofsourcing.com/sites/default/files/articles/Sustainable%20Procurement%20Pledge.png" title="Procurement Is the Ultimate Guardian of Responsible Supply Chains" class="colorbox" rel="gallery-node-1680-IpjgJjHT8uo"><img typeof="foaf:Image" src="https://www.futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Sustainable%20Procurement%20Pledge.png?itok=c5rdixPz" width="624" height="325" alt="Procurement Is the Ultimate Guardian of Responsible Supply Chains" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/can-b2b-transactions-help-tackle-todays-most-pressing-challenges">Can B2B Transactions Help Tackle Today’s Most Pressing Challenges?</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Imagine a world where all people thrive within the environmental boundaries of our planet. Picture a planet where the immediate threat of climate disaster has been avoided and where global businesses have evolved their business models to support a responsible and low-carbon economy.</p> <p>Whilst is seems a bit far-fetched looking at today&rsquo;s realities, we fundamentally believe this world vision is possible and millions of procurement professionals worldwide are mission-critical in making this come true.</p> <p>The Sustainable Procurement Pledge offers a community and a starting point for anybody in procurement to declare their personal commitment to making a difference and changing their sphere of influence right now.</p> <h1>Changing the World Bottom-up</h1> <p>The idea was ignited by the <a href="https://globalclimatestrike.net/" target="_blank">Global Climate Strike</a> on September 20, 2019. What a powerful message! Children and adults from all walks of life made a clear statement, and we were all reminded about our prime responsibility: Leave our home, our ONE planet, in the same condition as it had been entrusted to us. &nbsp;</p> <p>At the same time, the <a href="https://fridaysforfuture.org/" target="_blank">Fridays for Future</a> initiative also provided an obvious clue to the fundamental question on how we can accelerate change to have an immediate impact &mdash; start with ourselves!</p> <p>There are many very good and profound sustainability initiatives, commitments and legislations, all involving companies, governments and institutions. But rarely have we seen professional initiatives that are personally addressed to individuals. Yet, as procurement professionals, we are holding an incredible decision power that many of our colleagues may not yet realize. Using our discretionary decision power for good drives many small changes that ultimately lead to a big change.</p> <h1>The Sustainable Procurement Pledge</h1> <p>Recognizing the power of the crowd, the idea to create a <a href="https://www.linkedin.com/company/sustainable-procurement-pledge/" target="_blank">Sustainable Procurement Pledge</a> (#SPP) was born. We wanted it to be a very inclusive pledge in which anybody involved in procurement activities around the globe could find themselves and engage &mdash; from intern to CPO, from student to professor, from buyer to supplier.</p> <h1>Leapfrogging Current Efforts</h1> <p>We wanted the pledge to be complimentary to existing sustainability initiatives. Responsible supply chains are in a space where we all need to collaborate. Combining the top-down initiatives with our bottom-up approach provides us all with the best chance to have a real impact.</p> <p>The Purpose of #SPP is to support all procurement individuals across the world to use their decision power for good, ensuring that the UN Sustainable Development Goals of ending poverty, protecting the planet and ensuring that all people enjoy peace and prosperity will be met by 2030.</p> <p>If each of us takes responsibility for our own procurement conduct, we can tackle the small things as well as change our way of thinking, reflecting and acting. If we all incorporate sustainability aspects into our decision matrix, then the sum of these small changes will make a huge impact on our world. Every procurement decision is a ballot! So, let us make it visible to the world and become ambassadors for sustainable procurement.</p> <h1>Increasing Awareness for Sustainability and its Importance in Procurement</h1> <p>What we would like to achieve with the Sustainable Procurement Pledge is to increase the awareness for sustainability and its importance in procurement.</p> <p><a href="https://www.docdroid.net/xlEM0vw/sustainable-procurement-pledge.pdf" target="_blank">The pledge</a> contains five statements derived from the 10 principles of the UN Global Compact and the Sustainable Development Goals of the United Nations. Subscribing ambassadors commit themselves to stand up for people and the planet, to work together to change the world, to start with themselves, to share knowledge and listen to others. Collaborating together, we can leave the right legacy of protecting a sustainable planet for us and future generations.</p> <p>With the Sustainable Procurement Pledge, we wanted to lay the foundation and invite others to further develop, commit, act and share the pledge in their personal networks. Since its go-live on October 18, more than 700 ambassadors have joined the <a href="https://www.linkedin.com/groups/8845732/" target="_blank">Sustainable Procurement Ambassador LinkedIn group</a>, an open space to collect and share ideas of good practices and life hacks for more responsible procurement aspects. Here, we initiate and foster a dialogue about responsible procurement and want to involve as many people in the procurement sector as possible to join forces and make a real impact on the ground.</p> <h1>Concrete Actions We Can All Take</h1> <p>We trust that everyone knows best which small and big things he or she can change to make an impact on responsible procurement.</p> <p>Obviously, there is no one-size-fits-all solution to solve the world&rsquo;s most pressing topic. However, we strongly believe in our #SPP ambassadors and the power and creativity of the crowd to develop and share ideas and good practices. These will ensure everybody can find inspiration for his or her individual next step.</p> <p>In every decision process, let&rsquo;s ask ourselves which sustainability aspects we can include, what kind of sustainability impact our decision will have, and how our choices can bring the optimum for a more sustainable procurement activity.</p> <p>We believe there are always options! Let&rsquo;s challenge ourselves and others to adopt more sustainable alternatives that will pay off in the long term.</p> <h1>Please Join the Sustainable Procurement Pledge</h1> <p>We warmly invite you <a href="https://www.linkedin.com/groups/8845732/" target="_blank">to join the Sustainable Procurement Pledge (#SPP)</a> and make your commitment visible to the world. Join us and become an active ambassador who encourages his or her respective network to also embark on this mission.</p> <p>None of us knows what the future will bring. We are, however, committed to doing our personal best to ensure that a positive legacy of procurement is preserved. There is not a lot of time left and we do not have a second planet!</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/sustainable-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sustainable Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/climate-change" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Climate Change</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/impact-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Impact Sourcing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Procurement Is the Ultimate Guardian of Responsible Supply Chains - Future of Sourcing" addthis:url="https://www.futureofsourcing.com/procurement-is-the-ultimate-guardian-of-responsible-supply-chains"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sun, 26 Jan 2020 17:00:00 +0000 Thomas Udesen 1680 at https://www.futureofsourcing.com https://www.futureofsourcing.com/procurement-is-the-ultimate-guardian-of-responsible-supply-chains#comments