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.
In the first installment of a two-part series, Mitchell examines what is almost certainly the hottest topic in Procurement today. While Mitchell acknowledges that AI is slightly over-hyped, he cautions Procurement professionals against dismissing it entirely. Machine learning, he suggests, could have major could prove immensely helpful for purchasing teams looking for help classifying their spend into new taxonomies. That's just one area in which the new technology will reduce complexity throughout the sourcing process and free up time for Procurement professionals to perform the tasks that only a human can handle
Cleaning house shouldn't stop at home. The Doctor recommends extending your efforts to include your business as well. Where should you start? While numerous business areas could use some scrubbing, the best jumping off point could be your evergreen contracts. In all likelihood, prices have dropped, demand has increased, and/or new options have entered the market since your company last examined these documents. Ensure these documents are cataloged electronically, determine which contracts you should continue to consider evergreen, sort them by auto-renewal data, and conduct a thorough spend analysis. Soon, your team will uncover savings opportunities, eliminate inefficiency, and establish a plan for smarter operations moving forward.
Nora P. Neibergall, Buyer's Meeting Point, 4/5/2018
Using late-2017's series of hurricane's as a case study, Neibergall offers best practices for risk mitigation across the supply chain. The security of long-term supplier relationships, she suggests, can actually lead to insecurity. Many companies along America's Gulf Coast found themselves faced with serious losses when their sole, long-term suppliers were hit by the Hurricanes Harvey, Irma, and Maria. Moving forward, Neibergall advises these organizations to include language that will allow them to pursue alternate suppliers when disaster strikes. She closes by reminding readers that risk management is now every Procurement professional's concern.