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.
Even if your outsourced Procurement Services Provider doesn't tack on hidden costs, that doesn't mean they're delivering the full value they promised. So-called 'full-service' technologies and consulting firms often fall short of expectations. No firm or solution can truly offer expertise in every area, but it's important to audit your choice to ensure they come as close as possible. Ensure, for example, that your firm is truly providing expert in-house resources rather than a team of freelancers. Some firms promise expert resources, but will only arm their clients with a few hours of these experts' time. Delegating most tasks to interns and junior resources, they'll leave your team disappointed.
Megan Ray Nichols, Spend Matters, 2/16/2018
As global supply chains continue to grow and overlap, it becomes more and more challenging to develop plans for avoiding risk and responding to threats. In food supply chains, increased globalization presents particular cause for concern. In fact, 77% of manufacturers surveyed cited global expansion itself as a decided risk factor. Spoilage, contamination, and packaging errors all contribute to an unpredictable series of supply chains. Product recalls can have consequences well beyond financial losses, so companies need to perform more consistent quality checks than ever as they continue to expand. A little extra effort could save businesses and even save lives.
The Doctor advises companies to remember that sometimes they've already got what they need. Inventory and asset management are essential components of sourcing and value generation. Next time you're looking to upgrade your e-Procurement or S2P suite, make sure it includes an integrated inventory management component. Unused or unaccounted-for assets cost your company money. You're not only missing out on the value they were meant to bring, but in many cases, some of this inventory could be licensed or rented to generate further value.