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, 1/31/2018
Let's face it, Procurement is not known for championing innovation. In fact, so-called "innovation offices" typically cite internal Procurement teams as their biggest obstacle. Finn suggests that Procurement's negative reputation is well-earned, but there's no reason Procurement groups cannot re-brand themselves as forces for innovation within their organizations. Now is the perfect time. Procurement departments are increasingly embracing new responsibilities within organizations, and innovation can easily become one of those responsibilities. The key, Finn believes, is asking "Why Not?" instead of "What if?"
Michael Lamoureux AKA The Sourcing Doctor, Sourcing Innovation, 1/31/2018
Procurement professionals live for deals that seem "too good to be true." It's important, however, to accurately determine when agreements are not sustainable. They should also take the extra steps to develop actionable plans for making the unsustainable agreements into sustainable ones. Procurement teams aren't responsible when suppliers make unsustainable bids. That being said, when unsustainable agreements lead to bankruptcyit could reflect terribly on the Procurement consultants who let the agreement happen in the first place. To become a provider of choice, Procurement Services organizations need to excel at producing unexpected value and discouraging supplier stupidity.
The rash of natural disasters that closed 2017 were a wake-up call for many American organizations. FM Global survey recently conducted a survey of U.S. companies with more than $1 billion in revenue. They found that 68% cited the recent hurricanes as inspiration for new risk management efforts. It's impossible to predict the damage a hurricane or other natural disaster will do. It's essential, however, that companies bolster their supply chains with more emphatic risk management programs. Proactive behavior now could make all the difference in the near future. Weather will only grow more extreme, and those companies who fail to take notice could suffer grave consequences.