Redefining Modern Sourcing and Procurement for Increased Value

Procurement, or more commonly known then as purchasing, was a tactical unit in the business, responsible for processing purchase orders
Let’s think back to the early 90s:
For many of us, those days were filled with Beanie Babies, Tamagotchis, cartoons or grunge music.
At that time, procurement, or more commonly known then as purchasing, was a tactical unit in the business, responsible for processing purchase orders and identifying ways to cut costs.
Procurement was purchasing, and not much else.
But for some of us experienced (old) enough to be exposed to the working world at that time, our world was filled with the rise of enterprise resource planning (ERP) tools.
Most importantly, the standardization of work efforts, business process, and data into ERP platforms, coupled with the advancements in inter-network communications, helped create an interesting time for supply chain management.
The world seemed to get a little smaller and much more accessible in terms of being able to reach new customers across the globe, find new sources of supply, and ultimately make smarter business decisions.
Further, the efficiencies gained in production, collaboration and manufacturing led to the proven return on investment and helped prove the model of investing in your own company to increase growth.
It was around that time (1992 to be exact) that Source One was established as a professional services provider solely dedicated to helping buyers drive cost reduction through strategic sourcing.
But still, most companies are comfortable going through the motions of a hollow sourcing process in the form of a three-bid-and-buy, with the slight traction gained within categories like IT and marketing and their set spend thresholds.
But in 2017, that comfortability is far from state of the art.
When we look to the future and see how technological advances can revolutionize supply management practices, procurement leaders must ask themselves:
Is my organization prepared to capitalize?
Take, for example, the ways in which blockchain is driving the future of contract management in delivering higher efficiency and greater security, or how 3D printing is impacting manufacturing processes. Crowd Sourcing is giving the new way of Resource procurement…etc.
When we consider the value that is delivered by our procurement organization,
Are we still comparing our organization to the same arbitrary metrics?
Do we still define the savings delivered year-over-year?
Are we still comparing our organization to the same arbitrary metrics?
Do we still follow a three-bid-and-buy process?
When we think we’re not following a three-bid-and-buy, are we still limiting our self to the same old qualifying and negotiating tactics?
Do we still think our e-sourcing tools and the procure-to-pay system is doing the work for us?
Are you providing our supplier's opportunities to introduce innovative approaches or products?

URL: https://goo.gl/7v8HSw