Source One's series for keeping up with the most recent highlights in procurement, strategic sourcing, and supply chain news week-to-week. Check in with us every Monday to stay up to date with the latest supply management news.
Tom Finn, Spend Matters, 2/7/2018
The NFL has been getting sacked left and right for years now. The continued success of the Super Bowl, however, provides an incomparable case study in effective risk management. It doesn't take much imagination, Finn suggests, to imagine what could go wrong at the NFL's premier event. Sure, every know and then we get technical difficulties, but the relative success of the yearly event can teach us quite a lot. Like great quarterbacks, the Procurement professionals behind the Super Bowl continually prove themselves adept at both calling plays and calling audibles on the fly. Go Birds!
People Don't Quit Procurement Jobs, They Quit Procurement Bosses
Charles Dominick, Next Level Purchasing, 2/7/2018
A lot of Procurement professionals reach managerial positions because they were excellent buyers. They distinguished themselves with tenacity and an aggressive work ethic. Unfortunately, these are not always the qualities that make for effective leadership. Sure, a leader should behave aggressively at times, but they need to strive to develop a balanced approach to managing talent. Dominick suggests the ideal Procurement manager should balance the qualities of numerous breeds. They need to be both pit-bull and pug.
Outsourcing tactical duties is a popular quick-win solution for Procurement teams. Many organizations, however, fail to assess their BPOs or Category Managers closely enough. A great Category Manager is an incomparable asset, but many pile on hidden costs. Additional charges like Rate Mark-up, Pass-through Expenses, Taxes, and Commissions can add up quickly and limit the true value of an arrangement. Worse still, these charges are just the start. Procurement organizations need to strive to analyze the relationships they source as tirelessly as they analyze products and services.