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.
Nick Heinzmann, Spend Matters, 5/9/2018
ISM2018's agenda was packed to the gills with sessions dedicated to the most terrifying buzzword of them all, cybersecurity. Across numerous presentations - including a keynote with John Brennan and General Keith Alexander - a common theme emerged. While Procurement faces a growing number of risks, it is perfectly positioned to assess risks and collaborate with IT in addressing them. The increasing prevalence and severity of cyberattacks mean it's time for Procurement to develop resilient strategies that call on its facility for relationship management. Avoiding costly data breaches will mean getting internal stakeholders, suppliers, and even the federal government on the same page to address concerns.
Every Procurement department wants to evolve their operations, mature into a strategic business partner, and reach their full potential. These efforts are complicated, however, by the dozens of separate source-to-pay, operational, and financial processes that good supply management necessitates. Professionals need to stake stock of their people, technology, and processes to select the appropriate priority. The Doctor emphasizes the importance of thinking carefully and critically throughout this process. Selecting any area as a priority will naturally mean insufficient resources elsewhere. Examining a list of Procurement's concerns, he points out the benefits and drawbacks of nearly everything Procurement might prioritize. Renegotiation & Credibility
Charles Dominick, Next Level Purchasing, 5/9/2018
Dominick uses the headlines to examine the question of trust in Procurement and Supply Management. President Trump's decision to withdraw from the Joint Comprehensive Action Plan has drawn criticism from pundits around the world. "The primary criticism," Dominick writes, "is that the US' credibility will be harmed." Credibility is an all-important resource for Procurement professionals. If supplier perceive your organization as untrustworthy, they're unlikely to enter into an agreement. If they do enter a partnership, they might hesitate to provide their best resources. The key, Dominick suggests, is to thoroughly weigh the cost of lost credibility versus the cost of maintaining a bad deal. Pulling out of an agreement is always risky, but the risk does sometimes pay off.