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.
For Procurement professionals, managing internal and external risks during contract negotiations can often feel like more trouble than it's worth. Finn offers his suggestions for simplifying the process and reducing operational friction without sacrificing the quality of agreements. Companies can begin to streamline contracting by educating their legal department and inviting them to demonstrations of the latest contracting solutions. He suggests caution, however, when it comes to automation. The best contracting software in the world won't help Procurement if they're populating it with ineffective content. Finn concludes by quoting PactSafe founder Brian Powers, "Stop thinking of contracts as words on paper . . . and rather . . . start thinking of them as connected sets of data." Procurement can quickly optimize contracting by cutting ties with their outdated practices and embracing data integration.
Michael Lamoureux, Sourcing Innovation, 3/22/2018
Getting both parties to see eye-to-eye during negotiations is challenging under the best of circumstances. With increased geopolitical tension, inconsistent trade agreements, and shifting regulations the process is only growing more taxing. This is particular true where negotiations across national borders are concerned. How can Procurement teams guarantee their contracts are effective? The Sourcing Doctor suggests that professionals constantly monitor news sites and look out for announcements from government organizations. It's also essential that Procurement stop trying to manually manage its contracts. To remain successful and compliant, require advanced technology that can quickly assess documents, point out deficiencies, and suggest potential fixes.
Sydney Lazarus, 3/20/2018. Spend Matters
Deloitte's latest survey of Procurement's current state suggests that many CPOs are cautiously optimistic for the future of their industry. More Procurement leaders than ever believe they've earned executive support, but many still remain unsure whether they are contributing the maximum strategic value. As expected, the issue of talent remains an important - and under-addressed - one for Procurement teams. According to the report, only 49% of respondents believe their team is properly equipped. Additionally, 72% of respondents report spending less than 2 of their budget on training and development programs. CPOs are also largely skeptical of the potential value digital Procurement strategies can bring them.