Future of Sourcing - Procurement http://futureofsourcing.com/tags/procurement en How A Sourcing Buyer Optimized A Company's Food Program http://futureofsourcing.com/how-a-sourcing-buyer-optimized-a-companys-food-program <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/CaseStudy_Geodis_Display_1600x800.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/CaseStudy_Geodis_Display_1600x800.jpg" title="How A Sourcing Buyer Optimized A Company&#039;s Food Program" class="colorbox" rel="gallery-node-2305-WSKSVnUqj84"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/CaseStudy_Geodis_Display_1600x800.jpg?itok=rZBnoKda" width="1024" height="512" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <div> <div> <div><strong>Increased efficiency &amp; visibility for procurement professionals</strong></div> <div>&nbsp;</div> <div>The Company: GEODIS is a global logistics company with over 140 locations across the United States. 40 people across the company regularly ordered food for employees, but each had a different ordering and tracking process. This led to disorganization, wasted time, and a lack of reporting. GEODIS needed a way to organize all the company&rsquo;s food spend into one place.</div> <div>&nbsp;</div> <div>The solution: an ezCater corporate account. All of the company&rsquo;s food spend is now under one platform with a centralized ordering system, automated reporting, and access to over 100,000 restaurants nationwide, resulting in better visibility for company-wide food ordering, spend, and several hours of time saved each week. <a href="http://Increased efficiency &amp; visibility for procurement professionals The Company: GEODIS is a global logistics company with over 140 locations across the United States. 40 people across the company regularly ordered food for employees, but each had a different ordering and tracking process. This led to disorganization, wasted time, and a lack of reporting. GEODIS needed a way to organize all the company’s food spend into one place.&nbsp; The solution: an ezCater corporate account. All of the company’s food spend is now under one platform with a centralized ordering system, automated reporting, and access to over 100,000 restaurants nationwide, resulting in better visibility for company-wide food ordering, spend, and several hours of time saved each week.">Learn more!</a></div> </div> </div> <div>&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/legal" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Legal</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="How A Sourcing Buyer Optimized A Company&#039;s Food Program - Future of Sourcing" addthis:url="http://futureofsourcing.com/how-a-sourcing-buyer-optimized-a-companys-food-program"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 10 Jul 2023 18:19:00 +0000 David Scherzer 2305 at http://futureofsourcing.com http://futureofsourcing.com/how-a-sourcing-buyer-optimized-a-companys-food-program#comments Master The Art Of Disruptions: Tips To Turn Volatility & Disruption Into A Competitive Advantage http://futureofsourcing.com/master-the-art-of-disruptions-tips-to-turn-volatility-disruption-into-a-competitive-advantage <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Todd.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Todd.png" title="Master The Art Of Disruptions: Tips To Turn Volatility &amp; Disruption Into A Competitive Advantage" class="colorbox" rel="gallery-node-2296-WSKSVnUqj84"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Todd.png?itok=YWki4fnK" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <div> <p style="font-size: 13.008px;">&nbsp;</p> <div>&nbsp;</div> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <div><span style="font-size: 13.008px;">In a volatile world, businesses start to evaluate their processes on how to improve and modernize processes to grow and stay competitive. For today&rsquo;s business leaders, macroeconomic headwinds have made managing complex organizations even harder. According to <a href="https://www.mckinsey.com/Capabilities/Strategy-and-Corporate-Finance/Our-Insights/What-matters-most-Six-priorities-for-CEOs-in-turbulent-times?utm_campaign=later-linkinbio-mckinseyco&amp;utm_content=later-32893452&amp;utm_medium=social&amp;utm_source=linkin.bio">McKinsey &amp; Company</a>, CEOs stated that during uncertain times, their top priorities are strengthening resilience, technological transformation, retaining talent, and net-zero goals. But have you thought about how a smart business buying solution can meet these priorities?&nbsp;</span></div> <div>&nbsp;</div> <div>Here are four procurement tips to help you to use disruption to your advantage.&nbsp;</div> <div>&nbsp;</div> <div><strong>1. Increase efficiencies with digital tools</strong></div> <div>Companies are moving faster across six dimensions of resilience: finance, operations, technology, organization, business model, and reputation. When spend is a necessity, business buying should be easy. 54% of <a href="https://business.amazon.com/en/work-with-us/enterprise/digital-optimization-hbras">Harvard Business Review Analytics Services global survey</a> respondents reported that agility and sourcing speed were top priorities for their purchasing operations. While 73% said increased operational efficiency is the top benefit, they hope to achieve this by digitizing more processes.&nbsp;</div> <div>&nbsp;</div> <div>Implementing a digital procurement tool drives agility and speed. And in turn, agility and speed open up efficiencies for leaders. The desired outcome of leaders in using digital purchasing solutions is that digital technology boosts employee productivity, reduces costs, improves budgeting decisions, and, most importantly, leaves leaders having more time to focus on value-adding business priorities. Since technology constantly evolves, CEOs have more opportunities to transform their business.</div> <div>&nbsp;</div> <div><strong>2. Gain actionable insights to empower employee purchases</strong></div> <div>Organizations without insight into their spending can&rsquo;t recognize opportunities to streamline orders, meet quantity limits, or guide employee buying. Better understand your employees&rsquo; buying behavior using <a href="https://business.amazon.com/en/find-solutions/spend-intelligence-solutions?ref=b2b_solutions_3P_SIG_disruptionshttps://business.amazon.com/en/find-solutions/spend-intelligence-solutions?ref=b2b_solutions_3P_SIG_disruptions">advanced analytics and dashboards</a>. A comprehensive dashboard will help uncover a holistic view of spending patterns and help you establish policies and workflows that empower employees to make better buying decisions and quickly get what they need.&nbsp;</div> <div>&nbsp;</div> <div>When looking at the data, procurement decision-makers should be asking themselves the following:</div> <div>&bull; What happened?</div> <div>&bull; Why did it happen?</div> <div>&bull; What will happen?</div> <div>&bull; What should I do?</div> <div>These questions will turn insights into action. It can also find trends or issues that will go a long way to simplify the shopping experience, increase employee satisfaction, and drive productivity.&nbsp;</div> <div>&nbsp;</div> <div>But what if you have a restrictive purchasing policy? A paid solution from Amazon Business called <a href="https://www.amazon.com/ab/ccp-portal/guided-buying/benefits?ref=b2b_solutions_3P_SIG_disruptions">Guided Buying</a> helps achieve your organization&rsquo;s purchasing goals by automatically steering employees to the right products or suppliers defined by your organization. This allows you to identify preferred products or suppliers, restrict categories, and save time for everyone by removing the mystery of shopping for work and providing clear answers to the question: What am I allowed to buy? Guided Buying helps buyers find what they are approved to buy and enables them to submit requests to purchase items from restricted categories. This is a win-win for efficiency and time saving, as employees no longer have to wait days or weeks to receive purchase approval.</div> <div>&nbsp;</div> <div>Once you&rsquo;ve defined Guided Buying policies, you can track whether employees adhere to your organization&rsquo;s policies, spotlight specific products or sellers, check progress towards sustainability, DEI and corporate governance goals through responsible purchasing, and compare restricted and non-restricted spending based on <a href="https://www.amazon.com/b2b/aba/spend-visibility?ref=b2b_solutions_3P_SIG_disruptions">Spend Visibility&rsquo;s</a> Policy Adherence Dashboard. To further help employees avoid products that violate your organization&rsquo;s guidelines, such as alcohol or personal items, <a href="https://business.amazon.com/en/find-solutions/business-prime?ref=b2b_solutions_3P_SIG_disruptions">Business Prime</a> paid customers can enable Blocking policies. When you block unapproved items, this disables the Add to Cart button for employees. Blocking unapproved items increases buyer efficiency and decreases the burden on approvers.</div> <div>&nbsp;</div> <div>Combining data visualization tools and purchasing guardrails such as Spend Visibility and Guided Buying can help streamline day-to-day purchasing by consolidating suppliers to free employees&rsquo; time for more strategic assignments.</div> <div>&nbsp;</div> <div><strong>3. Increase cash flow and optimize costs</strong></div> <div>Even with significant headwinds, sustainability goals, economic competitiveness, and affordability continue to dovetail. Leaders need to adapt, mitigate, and bridge these concepts. One way to do so is to improve your cash flow by working with suppliers that provide extended payment options. This flexibility allows organizations to conserve cash, delay payments until the time is right, and avoid costly fees.</div> <div>&nbsp;</div> <div><a href="https://business.amazon.com/en/discover-more/events/cost-optimization-webinar?ref=b2b_solutions_3P_SIG_disruptions">Cost optimization</a> is another goal for many organizational leaders. It is essential to recognize that cost reduction and cost optimization are different. A focus on spending reduction can inadvertently compromise product and service quality and morale. Instead, as you build and grow your procurement process, consider ways to optimize efficiencies by eliminating waste and automating manual processes through digital technologies. A strategic e-procurement partner that allows you to streamline your list of suppliers and purchase products in one convenient spot will save money and time on administrative functions. This then lets you reinvest those resources in value-add initiatives that advance the organizational mission.</div> <div>&nbsp;</div> <div><strong>4. Strengthening resilience with Amazon Business</strong></div> <div>Disruptive innovation modifies how a company evaluates its processes and how to adapt. It will improve and modernize many company functions, further benefiting the company. By embracing a flexible purchasing system that can keep pace with your growing sourcing needs, procurement leaders at all-size businesses can build a stronger, more agile, and more productive team. <a href="https://business.amazon.com/?ref=b2b_solutions_3P_SIG_disruptions">Amazon Business</a> equips procurement leaders with the tools and technology to <a href="https://business.amazon.com/en/discover-more/blog/simplify-buying-for-your-small-business-or-startup?ref=b2b_solutions_3P_SIG_disruptions">simplify the buying process</a> and accelerate sourcing. The user-friendly shopping experience and simple set-up of Amazon make Amazon Business an easy choice for organizations at every growth stage.</div> <div>&nbsp;</div> <div>Discover smarter business buying solutions for today&#39;s organizations with Amazon Business.</div> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/legal" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Legal</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Master The Art Of Disruptions: Tips To Turn Volatility &amp;amp; Disruption Into A Competitive Advantage - Future of Sourcing" addthis:url="http://futureofsourcing.com/master-the-art-of-disruptions-tips-to-turn-volatility-disruption-into-a-competitive-advantage"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 23 May 2023 23:41:48 +0000 Todd Heimes 2296 at http://futureofsourcing.com http://futureofsourcing.com/master-the-art-of-disruptions-tips-to-turn-volatility-disruption-into-a-competitive-advantage#comments GEP Outlook 2023 http://futureofsourcing.com/gep-outlook-2023 <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/10778-Outlook-Report-2023-1600x800.png"><a href="http://futureofsourcing.com/sites/default/files/articles/10778-Outlook-Report-2023-1600x800.png" title="GEP Outlook 2023" class="colorbox" rel="gallery-node-2270-WSKSVnUqj84"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/10778-Outlook-Report-2023-1600x800.png?itok=p2BU3hYc" width="1024" height="512" alt="GEP Outlook 2023" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <div><a href="https://sig.org/gep-outlook-2023" target="_blank">Download The Report</a></div> <div>&nbsp;</div> <div>Your Guide to Supply Chain and Procurement Success in 2023</div> <div>&nbsp;</div> <div>Uncertainty clouds over the outlook for 2023. The concerns are many: disruptions, shortages, conflicts, inflation and the threat of recession. But supply chain and procurement leaders are getting used to it. They&rsquo;ve been battling crises for three years now and, in 2023, they stand ready to lead through the next round of challenges.</div> <div>&nbsp;</div> <div>Get a head start with the GEP Outlook 2023 report &mdash; it examines global business trends and features seven critical leadership themes that will help you prepare for what lies ahead and drive your business forward.</div> <div>&nbsp;</div> <div>Published annually, GEP Outlook is a trusted strategic guide for supply chain and procurement leaders across the world.</div> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>&nbsp;</div> <div>&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/coupa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Coupa</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="GEP Outlook 2023 - Future of Sourcing" addthis:url="http://futureofsourcing.com/gep-outlook-2023"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 30 Jan 2023 16:19:47 +0000 Sourcing Industry Group 2270 at http://futureofsourcing.com http://futureofsourcing.com/gep-outlook-2023#comments 2022 Gartner® Magic Quadrant™ Procure-to-Pay Suites http://futureofsourcing.com/https%3A//sig.org/2022-gartner%C2%AE-magic-quadrant%E2%84%A2-procure-pay-suites <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/2022-coupa-gartner_p2p_1600x800.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/2022-coupa-gartner_p2p_1600x800.jpg" title="2022 Gartner® Magic Quadrant™ Procure-to-Pay Suites" class="colorbox" rel="gallery-node-2267-WSKSVnUqj84"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/2022-coupa-gartner_p2p_1600x800.jpg?itok=ZzVPc3jk" width="1024" height="512" alt="2022 Gartner® Magic Quadrant™ Procure-to-Pay Suites" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <div> <div style="font-size: 13.008px;"> <h2><a href="https://sig.org/2022-gartner®-magic-quadrant™-procure-pay-suites" target="_blank">Download The Report</a></h2> <div>&nbsp;</div> <div>Coupa named a Leader for the seventh time in a row.</div> <div>&nbsp;</div> <div>In the 2022 Magic Quadrant Report for Procure-to-Pay Suites, Gartner evaluated procure-to-pay (P2P) solutions from 16 different software vendors. Coupa placed highest for ability to execute and furthest to the right for completeness of vision in the Leaders Quadrant.</div> <div>&nbsp;</div> <div>Coupa received this position based on what we believe is our ability to help companies manage all types of spend across direct, indirect, and services.</div> <div>&nbsp;</div> <div>Download this report to tap into Gartner expertise. You&#39;ll learn why we believe this recognition validates our platform to allow extensive spend risk management &amp; fraud detection, payments, and contract management directly within the core P2P capabilities making it unique in the marketplace.</div> <div>&nbsp;</div> <div>&nbsp;</div> </div> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>&nbsp;</div> <div>&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/coupa" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Coupa</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="2022 Gartner&amp;reg; Magic Quadrant&amp;trade; Procure-to-Pay Suites - Future of Sourcing" addthis:url="http://futureofsourcing.com/https%3A//sig.org/2022-gartner%C2%AE-magic-quadrant%E2%84%A2-procure-pay-suites"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 24 Jan 2023 14:51:40 +0000 Sourcing Industry Group 2267 at http://futureofsourcing.com http://futureofsourcing.com/https%3A//sig.org/2022-gartner%C2%AE-magic-quadrant%E2%84%A2-procure-pay-suites#comments Mastering Supplier Risk Management: How to Build More Reliable Suppliers http://futureofsourcing.com/mastering-supplier-risk-management-how-to-build-more-reliable-suppliers <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Eddie%20M.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Eddie%20M.png" title="Mastering Supplier Risk Management: How to Build More Reliable Suppliers " class="colorbox" rel="gallery-node-2329-WSKSVnUqj84"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Eddie%20M.png?itok=CPdFfThj" width="624" height="325" alt="Mastering Supplier Risk Management: How to Build More Reliable Suppliers " title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <div> <div> <div><em><strong><span style="font-size: 13.008px;">In the intricate business world, managing supplier risk is critical to ensuring smooth operations and protecting the bottom line. A robust Supplier Risk Management (SRM) program can help businesses mitigate potential risks and build stronger, more reliable relationships with suppliers. This article will delve into the three main components of an effective SRM program: Supplier Segmentation, Supplier Qualification, and Ongoing Compliance Monitoring.</span></strong></em></div> </div> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div><strong><span style="font-size: 13.008px;">Supplier Segmentation&nbsp;</span></strong></div> <div>The first step in an SRM program is Supplier Segmentation. This process involves categorizing the supply base into different segments based on various factors, such as the type of goods or services provided, the business volume, and the risk associated with each supplier. By segmenting suppliers, businesses can prioritize their efforts and resources to effectively manage the suppliers that pose the most significant risks.&nbsp;</div> <div>For a utility company, we segmented the supply base to identify high-risk and critical suppliers for the initial focus of the SRM program. With over 1,000 suppliers, we had to find a way to maximize the ROI by addressing our most significant risks. We first limited the scope to the 800+ suppliers with at least $5K in spend. Then, we worked with a cross-functional team, including stakeholders from each business area, to identify the highest-risk services and suppliers critical to the operation. Each company should use discretion to define the appropriate segmentation methodology and criteria.&nbsp;</div> <div>&nbsp;</div> <div>&nbsp;</div> <div><strong>Supplier Qualification&nbsp;</strong></div> <div>After the suppliers have been segmented, the next step is Supplier Qualification. This process involves thoroughly vetting each supplier to ensure they meet the business&#39;s specific requirements before they are allowed to perform any work. For instance, qualification requirements could include elements like ensuring suppliers have valid licensing and are financially healthy. This step is crucial in preventing potential risks that could arise from working with unqualified suppliers.&nbsp;</div> <div>&nbsp;</div> <div>High-risk suppliers are determined by the nature of the work performed. Generally, high-risk work has at least one of the following characteristics: there is a reasonable potential for bodily injury, significant damage to company assets, or negatively impacting the general public or environment. Because of the potential for serious harm, the qualification process for high-risk suppliers should have additional safety requirements and/or thresholds. For example, a qualification requirement for both a medium- risk and high-risk supplier may include evaluating each company&rsquo;s <a href="https://www.osha.gov/node/999877590" target="_blank">DART rate</a>; however, the threshold for qualification could differ (i.e., 1.5 vs. 1.8 average rate), holding high-risk suppliers to the highest safety standards.&nbsp;</div> <div>&nbsp;</div> <div>Procurement has the best purview to oversee the qualification process once there is an established list of requirements and thresholds for determining if a supplier is qualified. The requirements should be specific to the risk level and size of the supplier. A detailed variance approval process will be necessary for suppliers not meeting the established thresholds.</div> <div>&nbsp;</div> <div>&nbsp;</div> <div><strong>Ongoing Monitoring&nbsp;</strong></div> <div>The final component of an SRM program is Ongoing Monitoring. This involves regularly monitoring the performance of suppliers and supplier information to ensure they continue to remain compliant with the established requirements. Regular evaluations of specific suppliers should be conducted at defined intervals and on an ad-hoc basis. This continuous monitoring allows businesses to identify issues early and take corrective action before they escalate into significant problems. This is where having the right enablers becomes critical for sustainability and efficiency..&nbsp;</div> <div>&nbsp;</div> <div>A sustainable and efficient program can be achieved by combining robust, user-friendly software with outsourced services like data collection. While some requirements, like certifications, are valid until expiration, others, like safety metrics, must be collected and reviewed regularly. Having a Supplier Information Management (SIM) software or a Third-Party Risk Management (TPRM) partner is crucial to automate or outsource the time-consuming tasks of collecting data and identifying non-compliance, enabling procurement to focus on strategic tasks, like supplier development and corrective actions.&nbsp;</div> <div>&nbsp;</div> <div>&nbsp;</div> <div><strong>Finding a Third-Party Risk Management (TPRM) Partner&nbsp;</strong></div> <div>We cast a wide net to find the right partner or combination of partners, evaluating over 40 software suppliers, data sources, and qualification services companies. We focused on best-of-breed and emerging solutions.&nbsp;</div> <div>&nbsp;</div> <div>Eventually, two solution options emerged.&nbsp;</div> <div style="margin-left: 40px;">1.<span class="Apple-tab-span" style="white-space:pre"> </span>Implement a SIM software or a combination of software and data sources (e.g., <a href="https://www.dnb.com/marketing/media/dnb-hoovers-free-trial-business-database.html?utm_source=bing&amp;utm_medium=cpc&amp;utm_campaign=BL+%7C+G+%7C+NAMER+%7C+SMS+%7C+Sales+Acceleration&amp;utm_content=&amp;utm_term=lookup%20business%20information&amp;campaignid=444047266&amp;adgroupid=1258941446087087&amp;creativeid=&amp;gclid=318037c5f6d618b49bd55225386019ba&amp;gclsrc=3p.ds&amp;msclkid=318037c5f6d618b49bd55225386019ba" target="_blank">D&amp;B</a>, 
<a href="https://www.experian.com/business-information/financial-stability-risk-score" target="_blank">Experian</a>, etc.) and internally manage the program. 
</div> <div style="margin-left: 40px;">2.<span class="Apple-tab-span" style="white-space:pre"> </span>Leverage a full-service TPRM provider offering a software platform while allowing the client to 
outsource information collection, validation, and supplier evaluation services.&nbsp;</div> <div style="margin-left: 40px;">&nbsp;</div> <div>There are pros and cons to each option. While the self-managed option offers more autonomy and a lower long-term TCO, the longer path to implementation and resource requirement to manage led us in a different direction for the client.&nbsp;</div> <div>&nbsp;</div> <div>Once we decided on a solution model, we sent our detailed service requirements to the TPRM providers that fit the required profile. Ultimately, the client chose a solution that most closely matched our requirements and offered the most competitive cost model.&nbsp;</div> <div>&nbsp;</div> <div>&nbsp;</div> <div><strong>Conclusion&nbsp;</strong></div> <div>In conclusion, a comprehensive SRM program that includes Supplier Segmentation, Supplier Qualification, and Ongoing Compliance Monitoring is essential for any business looking to mitigate supplier risk. By implementing such a program, companies can ensure they work with reliable suppliers, thereby protecting their operations and bottom line.</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/legal" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Legal</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Mastering Supplier Risk Management: How to Build More Reliable Suppliers - Future of Sourcing" addthis:url="http://futureofsourcing.com/mastering-supplier-risk-management-how-to-build-more-reliable-suppliers"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 12 Mar 2024 15:01:22 +0000 Eddie M Campbell 2329 at http://futureofsourcing.com http://futureofsourcing.com/mastering-supplier-risk-management-how-to-build-more-reliable-suppliers#comments Beyond Surviving: Achieving Long-Term Business Resilience with Agile Procurement and Supply Chain Strategies http://futureofsourcing.com/beyond-surviving-achieving-long-term-business-resilience-with-agile-procurement-and-supply-chain <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Amazon%20big.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Amazon%20big.jpg" title="Beyond Surviving: Achieving Long-Term Business Resilience with Agile Procurement and Supply Chain Strategies" class="colorbox" rel="gallery-node-2313-WSKSVnUqj84"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Amazon%20big.jpg?itok=fYzHrg7Q" width="1024" height="512" alt="Beyond Surviving: Achieving Long-Term Business Resilience with Agile Procurement and Supply Chain Strategies" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <div> <p style="font-size: 13.008px;"><strong style="font-size: 13.008px;">By: Chris Costello,&nbsp;Head of Worldwide Strategic Accounts, Amazon Business</strong></p> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <p><span style="font-size: 13.008px;">In today&#39;s unpredictable business landscape, resilience has become the cornerstone of success. As companies face increasingly complex challenges, their ability to adapt and innovate has become critical for survival. One area that plays a pivotal role in enabling organizational resilience is procurement and supply chain management.&nbsp;</span></p> <p>Procurement and supply chain agility are vital components of business resilience, allowing organizations to quickly respond to and recover from disruptions while maintaining operations and safeguarding its long-term viability. An agile procurement and supply chain function ensures organizations can navigate uncertainties while optimizing costs, quality, and delivery.&nbsp;</p> <p>Prioritizing agility could make all the difference for broader organizational success: According to a study by&nbsp;<a href="https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/enterprise-agility-buzz-or-business-impact">McKinsey</a>, companies with agile supply chains experienced a 30-50% operational performance improvement, +20-30 points in employee engagement, and +10-30 points improvement in customer satisfaction than their less agile counterparts.&nbsp;</p> <p>Here are five tips to help your business harness its potential, optimize your supply chain, and achieve sustainable growth:</p> <p><strong style="font-size: 13.008px;">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong><strong style="font-size: 13.008px;">Embrace Market Dynamics</strong></p> <p>The business environment constantly evolves, with market conditions, customer demands, and industry trends shifting rapidly for multiple years in a row. These realities have forced many procurement leaders to accept a new and troubling reality: disruption may no longer be confined to isolated incidents, but remain wide-spread, compounding, and long-lasting. Committing to an agile procurement strategy allows businesses to embrace these complex market dynamics, enabling them to respond quickly to changes.&nbsp;</p> <p>By closely monitoring market trends, you can identify emerging opportunities or risks and make informed decisions regarding procurement. Effective risk management is a fundamental aspect of business resilience. As a procurement and supply chain professional, you play a critical role in identifying, assessing, and mitigating risks throughout the supply chain. By proactively identifying vulnerabilities and building robust contingency plans, your business can minimize the impact of disruptions and ensure continuity of operations.</p> <p><strong style="font-size: 13.008px;">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong><strong style="font-size: 13.008px;">Streamline Processes</strong></p> <p>Agile procurement emphasizes optimizing processes and workflows, enabling your businesses to eliminate inefficiencies that hinder productivity. Traditional procurement methods often involve lengthy approval processes, excessive paperwork, and complex supplier management. Adopting agile practices like automation, e-procurement systems, and electronic signatures can significantly streamline these processes, reducing administrative burdens and cycle times.&nbsp;</p> <p>According to a 2023 survey by&nbsp;<a href="https://www.pwc.com/us/en/services/consulting/business-transformation/digital-supply-chain-survey.html">PWC</a>, 86% of respondents agree their company should invest more in technology to identify, track, and measure supply chain risk, including 35% who strongly agree. An e-procurement system can be vital in building your business resilience by allowing teams to quickly secure the necessary resources, automate time-consuming tasks, manage supplier relationships, and ensure supply chain visibility.&nbsp;</p> <p>Additionally, look for an&nbsp;<a href="https://business.amazon.com/en/find-solutions/e-procurement?ref=b2b_solutions_3P_SIG_agile">e-procurement</a>&nbsp;system that can help eliminate bottlenecks and foster stakeholder collaboration; a truly agile procurement solution enhances operational efficiency, reduces costs, and improves overall organizational performance.</p> <p><strong style="font-size: 13.008px;">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong><strong style="font-size: 13.008px;">Build a Strong Supplier Relationship Management</strong></p> <p>Building strong and collaborative relationships with suppliers is paramount to your business&rsquo;s success. Agile procurement emphasizes effective supplier relationship management, open communication, trust, and mutual benefit. By fostering transparent relationships with suppliers, businesses can negotiate favorable terms, access innovative solutions, and tap into their market expertise.&nbsp;</p> <p>Furthermore, collaboration with your suppliers is critical to risk mitigation. Regular evaluations, feedback mechanisms, and performance metrics help maintain accountability and drive continuous improvement throughout the supplier network.&nbsp;</p> <p>At the same time, it is important to constantly diversify your supplier base to establish alternative sources of supply. If you can reduce dependencies on a single supplier or region, this will help mitigate risks associated with potential disruptions.</p> <p><strong style="font-size: 13.008px;">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong><strong style="font-size: 13.008px;">Make Decisions Based on Data</strong></p> <p>Agile procurement relies heavily on data analytics to drive informed decision-making. By leveraging&nbsp;<a href="https://business.amazon.com/en/find-solutions/spend-intelligence-solutions?ref=b2b_solutions_3P_SIG_agile">analytics tools and technologies</a>, your business can gain actionable insights into supplier performance, market trends, and cost optimization opportunities. These insights enable your business to make data-driven decisions regarding supplier selection, contract negotiations, demand forecasting, and risk management. Robust data analysis also allows proactively identifying potential bottlenecks or vulnerabilities in the supply chain, enabling you to implement preventive measures and mitigate risks effectively.</p> <p>A recent report by&nbsp;<a href="https://www.thehackettgroup.com/insights/2023-procurement-key-issues-2301/">The Hackett Group</a>&nbsp;reveals that data analytics and reporting ranked second among the top 10 procurement improvement initiatives planned for 2023, with 65% of organizations anticipating action in this area during the coming year. Nearly one-half of the companies surveyed have large-scale deployments of spend analytics tools, and another 44% have pilots in place.</p> <p>The ability to swiftly respond to market demands, optimize production, and deliver products or services reliably improves customer satisfaction and fosters brand loyalty. Satisfied customers are more likely to provide repeat business, refer new customers, and contribute to positive word-of-mouth marketing, which drives revenue growth.</p> <p><strong style="font-size: 13.008px;">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong><strong style="font-size: 13.008px;">Embrace Innovation</strong></p> <p>Innovation is a driving force behind business growth and resilience. Agile procurement and supply chain functions seek innovative&nbsp;<a href="https://business.amazon.com/en/find-solutions?ref=b2b_solutions_3P_SIG_agile">solutions and technologies</a>&nbsp;to optimize processes, enhance efficiency, and improve overall performance. By embracing digital transformation, automation, and advanced analytics, your business can unlock new opportunities, gain a competitive advantage, and strengthen its resilience.</p> <p>Accordingly, 61% of companies surveyed by&nbsp;<a href="https://business.amazon.com/en/work-with-us/enterprise/pbp">The Hackett Group</a>&nbsp;expect accelerated technology innovation, and 58% expect a shift to digital delivery channels for goods and services. Digital initiatives are among the most prevalent major enterprise initiatives planned: 61% of companies have an initiative related to enterprise digital transformation &ndash; more than any other type of initiative &ndash; and 39% plan a major technology platform upgrade or new technology introduction.</p> <p>In an increasingly interconnected and unpredictable business landscape, resilience has become the bedrock of organizational success. Procurement and supply chain agility play a pivotal role. By fostering collaboration, embracing digitalization, and leveraging real-time data, you can proactively identify emerging risks, seize opportunities, and ensure the long-term viability of your business. Investing in procurement and supply chain agility is an imperative and strategic advantage that can drive business resilience and position yourself for sustained success in an ever-changing world.</p> <p>Visit&nbsp;<a href="https://business.amazon.com/?ref=b2b_solutions_3P_SIG_agile">Amazon Business</a>&nbsp;to learn more about achieving long-term business resilience and smart business buying solutions.</p> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/legal" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Legal</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Beyond Surviving: Achieving Long-Term Business Resilience with Agile Procurement and Supply Chain Strategies - Future of Sourcing" addthis:url="http://futureofsourcing.com/beyond-surviving-achieving-long-term-business-resilience-with-agile-procurement-and-supply-chain"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 08 Sep 2023 19:54:24 +0000 Chris Costello 2313 at http://futureofsourcing.com http://futureofsourcing.com/beyond-surviving-achieving-long-term-business-resilience-with-agile-procurement-and-supply-chain#comments Talking About a Services Procurement Revolution http://futureofsourcing.com/talking-about-a-services-procurement-revolution <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Gordon.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Gordon.png" title="Talking About a Services Procurement Revolution" class="colorbox" rel="gallery-node-2302-WSKSVnUqj84"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Gordon.png?itok=39F8fgqW" width="624" height="325" alt="Talking About a Services Procurement Revolution" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <div> <p style="font-size: 13.008px;">The responsibilities of procurement professionals have changed&nbsp;considerably in&nbsp;recent years. But&nbsp;there&rsquo;s&nbsp;one change that&nbsp;doesn&rsquo;t&nbsp;get much press.&nbsp;It&rsquo;s&nbsp;a not-so-subtle shift in emphasis from procuring goods to procuring services.</p> <div>&nbsp;</div> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <p><span style="font-size: 13.008px;">We&rsquo;ve&nbsp;already seen this shift in our daily lives. For example, these days&nbsp;it&rsquo;s&nbsp;not unusual to hire someone to do your grocery shopping.&nbsp;When your refrigerator needs replacing, you pay for delivery and installation services for the new&nbsp;one, and&nbsp;pay to have the old one carted away.</span></p> <p>And&nbsp;don&rsquo;t&nbsp;get me started about all the services available when you buy a car.</p> <p>In the business world, procurement professionals are increasingly challenged to master the art of&nbsp;servicesprocurement. I recently spoke about this with Pierre Mitchell, Chief Research Officer at Spend Matters. You can hear our full conversation, which covers today&rsquo;s procurement challenges and where we think&nbsp;it&rsquo;s&nbsp;going, in&nbsp;our&nbsp;<a href="https://d.dam.sap.com/a/aSQtZGM?rc=10">Spend Matters podcast</a>.</p> <p>In our &ldquo;everything is a service&rdquo; world, Pierre says, many things can be consumed through a business process service, or an information service, or via software as a service.&nbsp;I&rsquo;ll&nbsp;take that a step further. In recent years organizations have seen first-hand how they can leverage services to fill skills gaps, execute projects, and create a more flexible and economical workforce.&nbsp;Staff augmentation,&nbsp;focused managed service providers (MSPs), and outsourcing make this possible.</p> <p>As a result, since the start of the pandemic there has been no slowdown in the procurement of services. Interestingly, this trend has created a clear overlap between the work done by the procurement and human resources functions. In fact,&nbsp;<a href="https://www.fieldglass.com/resources/reports/hbr-talent-disruption-strategic-workforce-planning-age-labor-shortages?campaigncode=CRM-YI22-ISM-1497334&amp;source=article-glo-hbrblogpost">a 2022 report from Harvard Business Review</a>&nbsp;observed that if services procurement continues at the current pace &ndash; which the report says it will &ndash; the human resources and procurement functions will need to work together more closely than they ever have.</p> <p><strong>The C-suite is taking notice</strong></p> <p>In 2022,&nbsp;an&nbsp;<a href="https://www.ariba.com/resources/library/library-pages/chain-reactions?campaigncode=CRM-Y122-ISM-1497332&amp;source=blog-glo-TEGblogpost" target="_blank">Economist Insight paper sponsored by&nbsp;SAP</a>&nbsp;reported that C-level executives want their procurement teams to turn their focus to &ldquo;organizational operating mode redesign.&rdquo; This includes the many different forms of services procurement: temporary workers, outsourcing, insourcing, and services contracts. They want to know how their organizations can use these strategically at a time when agility is essential and key skills are hard to find.</p> <p>This shift in focus is compelling procurement teams to become experts in every aspect of services procurement. However, as we noted in our&nbsp;<a href="https://d.dam.sap.com/a/aSQtZGM?rc=10">Spend Matters podcast</a>, the procurement of services is quite different from procurement of goods. Many services are far too complex to be tucked neatly into a catalog. They require planning and ongoing oversight. They also require skills and expertise that many procurement professionals&nbsp;don&rsquo;t&nbsp;possess.</p> <p><strong>Not your traditional source to pay process</strong></p> <p>Sourcing a services contract requires procurement to do significant up-front planning. How will you consume the contract? Are you buying labor, or are you buying an outcome? What is the cost mechanism &ndash; daily rates, time and materials, fixed-fee? How do you balance risk with agility?</p> <p>Traditionally, procurement would prefer a fixed-fee approach, which makes it possible to manage risk by building it into the statement of work (SOW). But that comes with its own problems. In the podcast I tell the story of how, years ago, I outsourced facilities management for transport in London. The scope for cleaning services alone was horrendous! A fixed-fee contract to clean London&rsquo;s transportation system required an&nbsp;uber-detailed&nbsp;SOW &ndash; it was 200 pages, forget about agility. Plus,&nbsp;it&rsquo;s&nbsp;challenging to define in an SOW when to outcome of the work is acceptable &ndash; you&nbsp;can&rsquo;t&nbsp;just say things are &ldquo;clean.&rdquo;</p> <p><strong>It&#39;s</strong><strong>&nbsp;time to engage in a strategic discussion</strong></p> <p>While the complexities of&nbsp;services&nbsp;procurement may seem a bit maddening &ndash; and a departure from how&nbsp;we&rsquo;veworked in the past &ndash; procurement teams should see this as an opportunity.&nbsp;We&rsquo;ve&nbsp;talked so much about how procurement demands a place in C-suite discussions to provide strategic guidance to the business.&nbsp;Let&rsquo;s&nbsp;not forget the Economist Impact survey, which tells us C-suite executives want procurement&rsquo;s guidance with &ldquo;organizational operating mode redesign.&rdquo;</p> <p>Clearly, these&nbsp;executives want to engage in strategic discussions around how to shape the workforce, leveraging external workers, outsourcing, and managed services. I would submit that there are questions businesses&nbsp;aren&rsquo;t&nbsp;asking themselves today &ndash; and these should be the starting point for these strategic discussions. Questions like:</p> <p>&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;What are the core needs of our business, and how can the procurement of services support them?</p> <p>&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When does an outsourcing contract cease to be an outsource contract, and become a full-on services contract?</p> <p>&middot;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Can we turn the tables on a traditional outsourcing model and use&nbsp;<em>insourcing</em>&nbsp;to build unique products that differentiate us from the competition?</p> <p>The procurement function brings the deep supply and market knowledge that will enable organizations to ride the&nbsp;seemingly continuous&nbsp;revolution in business.&nbsp;It&rsquo;s&nbsp;time to engage, because, as The Beatles sang,&nbsp;&ldquo;You&nbsp;say you want a revolution. Well, you know, we all want to change the world.&rdquo;</p> <p>In our&nbsp;<a href="https://d.dam.sap.com/a/aSQtZGM?rc=10">Spend Matters podcast</a>, Pierre Mitchell and I dive into today&rsquo;s pressing challenges in services procurement and offer insights into what needs to happen for procurement teams to take a leading role in guiding the future of their businesses. I encourage you to have a listen.</p> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/digital" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Talking About a Services Procurement Revolution - Future of Sourcing" addthis:url="http://futureofsourcing.com/talking-about-a-services-procurement-revolution"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Wed, 31 May 2023 15:21:25 +0000 Gordon Donovan 2302 at http://futureofsourcing.com http://futureofsourcing.com/talking-about-a-services-procurement-revolution#comments The Freelance Revolution: How Businesses Can Benefit from Hiring Freelancers http://futureofsourcing.com/the-freelance-revolution-how-businesses-can-benefit-from-hiring-freelancers <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Helpt.net_.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Helpt.net_.png" title="The Freelance Revolution: How Businesses Can Benefit from Hiring Freelancers" class="colorbox" rel="gallery-node-2295-WSKSVnUqj84"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Helpt.net_.png?itok=1UfQg88o" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <div> <div> <div> <div> <p style="font-size: 13.008px;"><span style="font-size: 13.008px;">The freelance revolution is here. More and more businesses are turning to freelancers to help them with their work, and for good reason. Freelancers offer a number of benefits that can help businesses save money, improve productivity, and gain access to specialized skills.</span></p> <div>&nbsp;</div> </div> </div> </div> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <p><span style="font-size: 13.008px;">One of the biggest benefits of hiring freelancers is cost savings. Freelancers can often be hired for a fraction of the cost of a full-time employee. This is because freelancers do not have the same overhead costs as businesses, such as office space, equipment, and benefits.</span></p> <p>Another benefit of hiring freelancers is flexibility. Freelancers can be hired on a project-by-project basis, which gives businesses the flexibility to scale their workforce up or down as needed. This is especially beneficial for businesses that experience seasonal fluctuations in demand.</p> <p>Freelancers can also offer businesses access to specialized skills. Freelancers are often experts in their field, and they can bring a wealth of knowledge and experience to your business. This can help you to improve your productivity and quality of work.</p> <p>Of course, there are also some challenges associated with hiring freelancers. One challenge is that it can be difficult to find the right freelancer for the job. There are a lot of freelancers out there, so it&#39;s important to take the time to vet them carefully before hiring them.</p> <p>Another challenge is that it can be difficult to manage freelancers. Freelancers are not employees, so they need to be managed differently. It&#39;s important to set clear expectations and deadlines for freelancers, and to communicate regularly with them.</p> <p>Despite the challenges, the freelance revolution is here to stay. Businesses that can successfully harness the power of freelancers can reap a number of benefits. By carefully considering the challenges and benefits of using freelancers, businesses can make an informed decision about whether or not this is the right strategy for them.</p> <p>Here are some tips for managing freelancers effectively:</p> <p style="margin-left:48pt;">&middot;&nbsp;Set clear expectations: Before you start working with a freelancer, make sure you have a clear understanding of what you need them to do. Be specific about the project&#39;s scope, deadlines, and deliverables.</p> <p style="margin-left:48pt;">&middot;&nbsp;Communicate regularly: Once you&#39;ve started working with a freelancer, it&#39;s important to communicate regularly. This will help to ensure that everyone is on the same page and that the project is on track.</p> <p style="margin-left:48pt;">&middot;&nbsp;Be flexible: Things don&#39;t always go according to plan, so it&#39;s important to be flexible when working with freelancers. Be prepared to make changes to the project as needed.</p> <p style="margin-left:48pt;">&middot;&nbsp;Pay on time: One of the best ways to keep freelancers happy is to pay them on time. Make sure you have a clear payment schedule in place and stick to it.</p> <p style="margin-left:48pt;">&middot;&nbsp;Get highly rated freelancers: Find freelancers with reviews and meaningful work history that is verifiable. Be careful to review their works history and the type of projects that are accustomed to doing. Understand their weaknesses and strengths, since all freelancers have both.</p> <p style="margin-left:48pt;">&middot;&nbsp;Onboard freelancers thoroughly: By onboarding freelancers thoroughly, you can help them to feel more integrated into your team and more invested in the success of your project. This can lead to better communication, collaboration, and results.</p> <p>By following these tips, you can successfully manage freelancers and reap the many benefits that they have to offer.</p> <p>&nbsp;</p> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/legal" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Legal</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The Freelance Revolution: How Businesses Can Benefit from Hiring Freelancers - Future of Sourcing" addthis:url="http://futureofsourcing.com/the-freelance-revolution-how-businesses-can-benefit-from-hiring-freelancers"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 23 May 2023 21:37:38 +0000 HelpT.net 2295 at http://futureofsourcing.com http://futureofsourcing.com/the-freelance-revolution-how-businesses-can-benefit-from-hiring-freelancers#comments To Combat Cybersecurity Threats, Shine a Light on Your Extended Enterprise http://futureofsourcing.com/to-combat-cybersecurity-threats-shine-a-light-on-your-extended-enterprise <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Dean%20a.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Dean%20a.png" title="To Combat Cybersecurity Threats, Shine a Light on Your Extended Enterprise" class="colorbox" rel="gallery-node-2294-WSKSVnUqj84"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Dean%20a.png?itok=BTZApO9Y" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <div> <div> <div> <div>The surprising thing about data breaches is that they no longer surprise us. We now expect businesses to get hacked. A <a href="https://www.darkreading.com/attacks-breaches/law-firm-uber-loses-drivers-data-hackers-breach">popular ride-hailing app</a>, <a href="https://www.wsj.com/articles/air-france-klm-notifies-frequent-fliers-of-data-breach-11673458396">international airline</a>, and <a href="https://nltimes.nl/2023/03/30/heineken-cz-also-part-major-dutch-data-breach-15-million-affected">world-renowned brewing company</a> all experienced significant data breaches tied to third-parties in the first four months of 2023, and they&rsquo;re not the only ones.&nbsp;</div> <div>&nbsp;</div> </div> </div> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div> <div>Hackers are sticking to their 2022 playbook as they target third parties with access to sensitive company information and more vulnerable security protocols. By compromising the weakest link in an organization&rsquo;s supply chain, cyber criminals gain access to a wealth of critical information that can hinder the operations of the extended enterprise. This strategy led to <a href="https://blackkite.com/wp-content/uploads/2023/01/third-party-breach-report-2023.pdf">63 third-party data breaches last year</a>, cascading into 298 data breaches across impacted organizations. And, thanks to a breakdown in supply chain visibility and third-party transparency, these incidents went undisclosed for an average of 108 days.</div> <div>&nbsp;</div> <div><strong>New Cybersecurity Regulatory Proposals Target the Third-Party Risks Lurking in the Dark</strong></div> <div>&nbsp;</div> <div>Bad actors can - and will - exploit vulnerabilities without adequate visibility into extended supply chains and third-party ecosystems. Cyber threats such as distributed denial of service (DDoS), intellectual property (IP) theft, malware, and ransomware pose a persistent and increasing cybersecurity risk to organizations and their suppliers. Economic uncertainty and insecurity, Russia&rsquo;s war on Ukraine, or China&rsquo;s ongoing espionage and IP theft have caused some of these incidents of blackmail and extortion, and we can expect more of the same.&nbsp;</div> <div>&nbsp;</div> <div>The recent rise in cyber attacks has prompted proposed cybersecurity regulations worldwide. In the U.S, public companies await the <a href="https://www.sec.gov/news/press-release/2022-39">Securities and Exchange Commission&rsquo;s final rule</a>, which will clarify whether they must publicly disclose cyber incidents within four business days and submit an annual report on their corporate boards&rsquo; cybersecurity expertise. The <a href="https://www.sec.gov/news/press-release/2023-52">SEC further expanded its proposal</a> to address cyber risks in the U.S. securities market last month.&nbsp;</div> <div>&nbsp;</div> <div>Meanwhile, in Europe, organizations in critical sectors, such as pharmaceuticals, transportation, energy, and more, await <a href="https://www.wsj.com/articles/european-ports-brace-for-cybersecurity-regulation-ece61a30#:~:text=Cybersecurity%20rules%20approved%20by%20the,report%20hacks%20to%20cybersecurity%20authorities">major changes to cyber incident reporting requirements</a>. By 2024, hundreds of companies working out of Europe&rsquo;s major ports must comply with fundamental security measures and cyber incident reporting requirements largely for the first time. Non-compliance will result in a fine of up to 10 million euros or 2% of global revenue.</div> <div>&nbsp;</div> <div>While these global regulations represent a critical next step in tackling today&rsquo;s cybersecurity threats, identifying breaches and maintaining compliance will require greater supplier visibility unseen in enterprise supply chains today. A recent McKinsey survey found that <a href="https://www.mckinsey.com/capabilities/operations/our-insights/taking-the-pulse-of-shifting-supply-chains">45% of respondents either had no visibility into their upstream supply chain or could only see as far as their first tier supplier</a>. To effectively prevent or mitigate third-party data breaches and other cyber incidents, businesses must have a holistic view of every vendor&#39;s security risks and operational procedures, as well as a consistent incident reporting framework.</div> <div>&nbsp;</div> <div>Illuminating the Path to Cyber Resilience with Effective Third-Party Risk Management</div> <div>&nbsp;</div> <div>Already, there are methods and solutions available to drive greater supplier visibility and transparency to comply with new legislation and detect, deter, and mitigate evolving cyber risks. Business leaders looking to improve their third-party risk management strategies should:</div> <div>&nbsp;</div> <div><strong>1. Assess the maturity of current risk management practices</strong>: Many organizations still rely on outdated, manual processes and systems, such as spreadsheets or emails to manage their third parties and risks. Disparate systems and the use of manual tools create inefficiencies in supplier onboarding, risk assessments, and risk mitigation processes. With today&rsquo;s heightened cyber threats and hacker sophistication, businesses must take a more integrated approach to third-party risk management and maintain a single organizational-wide inventory of their supplier relationships and risk profiles.</div> <div>&nbsp;</div> <div><strong>2. Develop a framework to ensure supply chain security and integrity:</strong> Companies must perform initial due diligence to identify potential risks before contracting with a new vendor; however, on-going due diligence throughout the relationship is just as important. Business leaders must institute an always-on, continuous risk-monitoring strategy to account for changes in risk throughout the scope of the relationship, immediately identify critical risks, and take corrective measures to mitigate threats and liabilities.</div> <div>&nbsp;</div> <div><strong>3. Take a risk intelligence approach to cybersecurity:</strong> Relying on self-reported, lengthy surveys can lead to inaccurate third-party information, supplier fatigue, slow or no response. Companies should pair cyber risk ratings tools, like Black Kite or SecurityScorecard, with third-party risk management solutions to augment security assessments, gather information to prioritize which third-parties to work with on risk remediation and continuously monitor third-parties&rsquo; external security posture.</div> <div>&nbsp;</div> <div><strong>4. Put cybersecurity in the context of unified risk management:</strong> Cybersecurity is only one of the many risk domains that organizations have to manage. Other risk domains include ESG, anti-bribery and corruption, ethics, financial risks, and industry-specific compliance issues. Business leaders must look at every type of risk that each of their third-parties brings to proactively address any and all threats to their organization.</div> <div>&nbsp;</div> <div>Taking shortcuts on third-party risk management is not worth the risk. Just one data breach or regulatory violation can cripple an organization&rsquo;s operations, cause significant revenue loss, and severely damage its reputation in the eyes of its customers, vendors, and the general public.&nbsp;</div> <div>&nbsp;</div> <div>Business leaders must think big, start small, and grow fast to build a TPRM program that can detect and protect a business from cyber incidents and ensure the security and integrity of their operations. Start by identifying your business objectives, determining which cross-functional roles are needed, and developing a roadmap with a clear outline of each implementation phase. Then, equip your team with blueprints that map the technologies, integrations, and business processes required for each risk domain and set clear metrics to assess the success and progressive business value of your TPRM program.&nbsp;</div> <div>&nbsp;</div> </div> <p>&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/legal" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Legal</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="To Combat Cybersecurity Threats, Shine a Light on Your Extended Enterprise - Future of Sourcing" addthis:url="http://futureofsourcing.com/to-combat-cybersecurity-threats-shine-a-light-on-your-extended-enterprise"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 23 May 2023 17:36:30 +0000 Dean Alms 2294 at http://futureofsourcing.com http://futureofsourcing.com/to-combat-cybersecurity-threats-shine-a-light-on-your-extended-enterprise#comments Behind the Scenes of Retail's 21st Century Makeover http://futureofsourcing.com/behind-the-scenes-of-retails-21st-century-makeover <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="http://futureofsourcing.com/sites/default/files/articles/Melanie%20Nuce%20Hilton.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Melanie%20Nuce%20Hilton.png" title="Behind the Scenes of Retail&#039;s 21st Century Makeover" class="colorbox" rel="gallery-node-2293-WSKSVnUqj84"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Melanie%20Nuce%20Hilton.png?itok=FZERzyhY" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <div> <div> <div><span style="font-size: 13.008px;">With the rise of omnichannel commerce, retailers are taking a more customer-centric approach to their business operations. The now &ldquo;always online&rdquo; consumer demands a more personalized shopping experience extending from their mobile phone to brick-and-mortar stores. But delivering a 21st century storefront requires advanced back-end technology where effectiveness begins and ends with the quality of the retailer&#39;s product information.</span></div> </div> </div> <div>&nbsp;</div> </div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div><span style="font-size: 13.008px;">Regardless of whether consumers shop online or in-store, the expectations for on-time, accurate fulfillment are the same. To deliver a seamless digital-to-physical, otherwise known as phygital, shopping experience, retailers must be able to see and accurately sell their inventory down to the last item, for every color and size variation, every time. This means that a retailer doesn&rsquo;t just need to know it has 10 pairs of Levi&rsquo;s jeans in-stock. It must know it has 10 pairs of &ldquo;312 Shaping Slim Women&rsquo;s Jeans&rdquo;, in the slate freeze color, size 30 waist and 32 length in its Atlanta location, so it can accurately reflect the product&rsquo;s availability and order fulfillment options online.</span></div> <div>&nbsp;</div> <div>Digital Transformation &amp; Customization in Retail</div> <div>&nbsp;</div> <div>Advanced technologies, like radio frequency identification (RFID) and two-dimensional barcodes, provide the foundation for the product visibility and supply chain transparency needed for brands to deliver a curated, preference-oriented shopping experience to consumers. But every retailer&rsquo;s journey with digitization looks a bit different.&nbsp;</div> <div>&nbsp;</div> <div><strong>RFID&nbsp;</strong></div> <div>Many retailers, like Macy&rsquo;s and Walmart, use radio frequency identification (RFID), leveraging GS1 standards for product identification, to monitor the movement of items from material sourcing to the manufacturing plant, and eventually to the end consumer. With this technology that uses radio waves to identify objects, Macy&rsquo;s enhances demand forecasting and adjusts procurement decisions for its mini distribution centers, and Walmart ensures online inventory accuracy from suppliers.&nbsp;</div> <div>&nbsp;</div> <div>Others, like Decathlon and Chanel, take the tech a step further. Decathlon uses RFID to provide a mobile checkout app so shoppers can avoid long queues. Meanwhile, Chanel, in partnership with Fetch, offers RFID-enabled &ldquo;fitting rooms&rdquo; that give consumers a unique try-on experience where they can preview the &ldquo;Chanel lifestyle&rdquo; without even entering a dressing room.&nbsp;</div> <div>&nbsp;</div> <div><strong>Two-Dimensional Barcodes&nbsp;</strong></div> <div>Another form of technology gaining traction in personalizing retail is two-dimensional or 2D barcodes, commonly seen as QR codes. When used in accordance with industry standards, these barcodes can provide highly detailed product information to help retailers improve their inventory visibility, sustainability initiatives and product recall processes. Retailers can also share highly detailed information on product attributes with consumers so they can make better purchasing decisions, leading to increased brand loyalty.</div> <div>&nbsp;</div> <div>Gabriella Hearst is one of many brands using QR codes to improve the product information available to its consumers today, including the product&rsquo;s materials, production processes and recycling instructions. Others, however, are using the technology to create unique customer experiences and ensure brand trust. For example, Adidas added QR codes to a certain sneaker line to give runners exclusive access to its in-house Spotify playlists, while Gucci is combating the influx of counterfeit luxury items by using QR codes to validate consumer purchases.</div> <div>&nbsp;</div> <div>An initiative called Sunrise 2027, being coordinated by GS1 US and industry, will soon take the industry&rsquo;s initial interest in this form of 2D barcode a step further. 2D barcodes will replace traditional UPC barcodes allowing brands and retailers to keep up with customer preferences, share pertinent product information, validate purchases, and create consumer experiences and promotions, while also scanning at point-of-sale &ndash; eliminating the need for multiple data carriers that take up package real estate.</div> <div>&nbsp;</div> <div>Barriers to Digital Transformation and How to Overcome Them</div> <div>&nbsp;</div> <div>While the retail industry has made strides towards digitization and offering accurate and personalized phygital experiences, a few barriers still stand in the way of widespread implementation. One of the biggest is the prevalence of paper-based record keeping systems, and a lack of personnel to oversee the transition. Another is that modernizing legacy systems can prove to be a complicated task, and senior management may feel that the risk to support the digital transition outweighs the benefits.</div> <div>&nbsp;</div> <div>To begin their digital transformation, organizations must:</div> <div>&nbsp;</div> <div>● <strong>Ensure internal alignment:</strong> Change happens from the top down, and digital transformation will fail every time if the entire organization is not working towards it.</div> <div>●<strong> Invest in innovation: </strong>Place strategic importance on the investments needed to enable technology. The initial hassle of modernizing legacy systems will be worth it when brands can capitalize on AI advancements that create time and monetary savings for your organization.</div> <div>● <strong>Standardize your data: </strong>Data collection alone is not enough. Organizations risk wasting time and resources if the data feeding into new systems is not consistently collected and structured in machine-readable and interoperable ways.</div> <div>● <strong>Collaborate: </strong>Fostering external partnerships is critical to success. By working with people across company lines, you can facilitate more streamlined data sharing, gain access to more in-depth information and accelerate your transition time.</div> <div>&nbsp;</div> <div>Retailers must adapt and become digitally mature to stay competitive and ensure consumers&rsquo; brand loyalty. We are still in the early stages of this process. RFID and 2D barcodes are just stepping stones to the next phase of retail digitization, which will largely be driven by artificial intelligence and automation. In the next three to five years, <a href="https://www.gartner.com/smarterwithgartner/gartner-predicts-the-future-of-supply-chain-technology">Gartner predicts that we will see an increase in the adoption of digital supply chain technologies</a>, as well as technologies that improve human decision making, but successfully integrating this type of technology again depends on an organization&rsquo;s data quality and back-end technology. Through digital transformation, retailers can innovate in-line with customer expectations, remain competitive in digital marketplaces, and more easily integrate with the industry&rsquo;s latest ground-breaking technologies.</div> <div>&nbsp;</div> <div>&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/legal" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Legal</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/digital" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Digital</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/transformation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Transformation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/leadership" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Leadership</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategy" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategy</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Behind the Scenes of Retail&#039;s 21st Century Makeover - Future of Sourcing" addthis:url="http://futureofsourcing.com/behind-the-scenes-of-retails-21st-century-makeover"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Thu, 18 May 2023 12:16:31 +0000 Melanie Nuce-Hilton 2293 at http://futureofsourcing.com http://futureofsourcing.com/behind-the-scenes-of-retails-21st-century-makeover#comments