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.
A new study by Deloitte and the Manufacturers Alliance for Productivity and Innovation has found that manufacturers are increasingly aware of the benefits a digital supply network might provide. Implementation of these technologies, however, is still generally lacking. Unsurprisingly, the primary obstacle standing in the way of implementation is insufficient funding. Other barriers include fragmented data, poor strategic management, and an inability to scale up initiatives. While all of these ranked highly, talent is still perhaps the primary concern for organizations. Deloitte reports that recruitment, retention, and training each present distinct challenges. Why a True Supply Management Professional Still Will Not Be Replaced by Technology Michael Lamoureux, Sourcing Innovation, 4/17/2018
The Doctor addresses the concerns of Procurement professionals who fear they'll soon find themselves out of a job. He suggests that humans are safe so long as algorithms are unable to truly sense. Predictive analytics are making progress, but machines still can't accurately predict how humans will behave. As a result, we can only expect them to negotiate with other machines. Successful negotiations are depend on more than simply transmitting a message. For the time being, the human element is an indispensable component of this process and of supply management altogether. Technology can make Procurement professionals more productive, but it won't replace them (yet).
Sydney Lazarus, Spend Matters, 4/19/2018
According to a recent Hackett Group report, cybersecurity and talent are the primary concerns for today's CPOs. Other areas of concern include broadening Procurement's scope and influence, improving agility, better managing complex spend categories, and producing value beyond cost savings. More than a quarter of respondents say they're going about achieving these goals by pursing talent from outside Procurement. In general, the report reveals a considerable discrepancy between Procurement's goals and its present capabilities. For example, 83% of respondents consider category management a high priority, but only 56% believe their team is currently equipped to develop these programs.