Cost is critical, but long term strategic needs must take priority. Sourcing function should align to strategic goals of the organization and look beyond traditional buying. Innovation is key and it is imperative for sourcing to partner with business as well as key vendors in driving innovation. Sourcing will create long term value through innovation, process improvements and better vendor relationships.
Majority of the procurement executives confirmed the importance of right talent mix – to handle current and long term objectives. The discussions re-affirmed the significance of being proactive and gearing up to support dynamic business changes.
Globalization and regulatory changes demand a shift from vendor management to risk management. The need for better preparedness to manage risk, robust risk assessment approaches and a systematic governance mechanism have gained tremendous importance. Vendor maturity and a true partnership approach were seen as being critical to improved governance and contract management.
Sourcing will continue to play a proactive and instrumental role in meeting strategic objectives
Collaboration between Sourcing, Vendors and Business is critical to innovation, process optimization and long term value creation
Need for better preparedness towards risk management. Risk assessment and on the ground feedback will gain importance.
Suppliers are part of the value chain and when managed well, they will make a significant difference to meeting strategic goals
Prepare for acquiring right talent into sourcing function. Create the right mix of teams with business and procurement experience
Leverage technology in driving efficiency in sourcing function
Cloud computing will change the way sourcing operates and how you source services. Develop readiness to handle the change.
Sourcing and Procurement executives will continue to play a strategic role, beyond just cost reduction, and are gearing up to handle sourcing dynamics and business expectations. Planning for long term and sustainable functioning is clearly the priority and it covers areas like talent management, levering industry leading tools, process changes and innovation. Service providers can and will be part of strategic sourcing initiatives and with mature relationships, service providers will align their services to long term goals of the sourcing organization.