One Trick Pony?

As a function the future of sourcing and procurement, much like several other professions, is in the midst of a major transformation. Simply increasing the “savings” goal of this organization by a certain percentage (typically arbitrary) year-over-year is an antiquated “strategy” that was never sustainable.  The future state will always include some element of savings so we will focus this blog on establishing a repeatable process for setting savings expectations AND using this foundational approach to change the c-suite discuss from exclusivity of savings to value-based metrics that support business strategy. 

As a corollary, it is our observation that ONE of the major reasons for the low regard / stature / profile of sourcing and procurement function among the business are based on the one-trick-pony adage: If ALL you do is based on one metric, savings, then that is all that will be expected. And, senior leaders will expect more of the same, every year.  A discussion on foundational metrics for re-establishing a sustainable sourcing and procurement function will be discussed on a future blog. 

The first step starts with a vision. For example:

A consolidated, real-time dashboard that presents historic data, forecasts trends and integrates third party information from which business decisions can be formulated. 

From a vision, we recommend assembling critical-to-success factors. For example:

  • Intelligence – not just data
  • Real-time dash boarding with  forecasting
  • Integrated within MS Office 
  • Rules based viewing – data displayed is unique to the role 
  • 24-7 availability via web browser 
  • Secure, cloud, subscription-based services

Assuming that savings is a primary goal, sourcing and procurement organizations must establish a foundation based on data. 

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