Future of Sourcing - Supply Chain Management http://futureofsourcing.com/tags/supply-chain-management en Rethinking the Future for Resilient Sourcing and Beyond http://futureofsourcing.com/rethinking-the-future-for-resilient-sourcing-and-beyond <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/Future%20for%20Resilient%20Sourcing%20.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Future%20for%20Resilient%20Sourcing%20.png" title="Future of Resilient Sourcing " class="colorbox" rel="gallery-node-1802-OgKfc8BLt6Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Future%20for%20Resilient%20Sourcing%20.png?itok=vZ0NgLuq" width="624" height="325" alt="Future of Resilient Sourcing " title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/securing-remote-workforces-payments-and-customer-data-in-a-rapidly-evolving-world">Securing Remote Workforces, Payments and Customer Data in a Rapidly Evolving World </a></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"> <p>While the COVID-19 pandemic is far from over, enterprises are looking beyond the current crisis with the hope of pandemic-proofing their supply chains and operations to build resiliency. But that view is too limited to build true resiliency. The next global business disruption crisis might be a pandemic, but it might also be something entirely different or so novel it&#39;s never been considered. Today&#39;s resilient enterprises need to embrace a mindset shift to view risk through a much wider lens. Those on the leading edge will embed this new risk mindset across all business functions, including sourcing and procurement.</p> <h1>The Need for Real-Time Risk Intelligence</h1> <p>In today&#39;s rapidly changing business environment, resilient enterprises require real-time intelligence. Point-in-time data is merely inadequate. Take, for example, the current COVID crisis. Relying on stale data from last year, last quarter or even last month is virtually worthless or even counterproductive when making sourcing or risk mitigation decisions today. The situation is evolving too quickly. Today&#39;s world simply moves too fast to make effective decisions based on stale point-in-time data.&nbsp;</p> <p>Traditionally, sourcing and procurement have been forced to rely on point-in-time data for decision making during the entire sourcing lifecycle. Every step from identifying the possible universe of suppliers, through narrowing down the alternatives, due diligence, supplier selection, contracting, onboarding and ongoing governance, could benefit significantly from real-time intelligence.&nbsp;</p> <p>Enterprises must recognize that in order to be reliable, intelligence needs to be not just real-time but also independent. Relying on data provided by the supplier or even an external source with questionable independence does not support resilient decision making. &nbsp;&nbsp;</p> <p>Independent, real-time intelligence enables a comparison of a supplier&rsquo;s current capabilities and limitations. It enables sourcing and procurement to understand the current state of a supplier&#39;s inherent risk profile. Areas that need to be addressed during the contract process or as part of the service level agreements, will be uncovered with real-time intelligence. &nbsp;&nbsp;</p> <p>COVID has made clear that the degree to which a supplier is able to manage risk has clear benefits for an enterprise&#39;s supply chain and continuity of operations.&nbsp; A supplier&#39;s risk management capabilities should be a selection criterion that is considered during the due diligence and selection process.&nbsp; Real-time risk intelligence enables comparison of this competitive differentiator across suppliers.</p> <h1>Looking Beyond Financial and Cyber</h1> <p>The supplier selection process traditionally has been very limited to considering only financial and cyber risks. Our current and future risk landscape requires looking at a much broader view of risk. Sourcing and procurement should consider a supplier&#39;s ability to manage all risks of disruption not only from financial vulnerabilities and cyber susceptibility. COVID has highlighted many supplier vulnerabilities including people risks from absenteeism and attrition; client risks due to lost revenue; solutions maturity risks due to underfunding as a result of financial pressures; governance, regulatory and compliance risks due to changes in government regulations and possible legal action; and a myriad of location-based risks.&nbsp;</p> <p>The vast majority of supplier due diligence fails to consider how the external environment could affect the supplier&#39;s ability to meet contractual obligations. According to the<a href="https://www.weforum.org/reports/the-global-risks-report-2020" target="_blank">&nbsp;2020 World Economic Forum Global Risks Report</a><u>,</u> in terms of likelihood and impact, leaders should be concerned with disruptions due to natural and environmental disasters, extreme weather, climate action failure, global governance failure, information infrastructure breakdown and as well as disease outbreaks. &nbsp;These location-based risks represent a significant part of an enterprise&#39;s risk landscape.&nbsp;</p> <p>Take, for example, a technology services supplier located in Guadalajara, Mexico. In the past, due diligence would most likely include a review of their financial statements and cyber susceptibility, but an actual risk evaluation needs to include the risks that occur in the location from where the services will be provided. The service provider in Guadalajara would be vulnerable to different risks of disruption than a similarly qualified supplier in Bangalore, India, due to location-based risks. A comprehensive due diligence risk framework should include political, natural disaster, extreme weather, epidemic, legal, financial, scalability, macro-economic, infrastructure, business and quality of life risks.</p> <p>To illustrate the importance of location intelligence, let&#39;s look at our current COVID-19 crisis. As with all disease epidemics, it started as a location-based risk. In this case, in Wuhan, China, before it spread from location to location around the world. The effects of this pandemic have varied widely in different areas due to local infection rates, local healthcare infrastructure, local government policies and restrictions to control the spread of the pandemic.&nbsp; In this crisis, the facts applicable to a supplier in one location have had little bearing on a similar supplier&rsquo;s ability to operate in a different location, sometimes even within the same country.&nbsp;</p> <h1>On-Going Proactive Risk Management</h1> <p>It&#39;s pretty clear that resiliency in the face of rapidly developing risk scenarios requires real-time risk intelligence. Long gone are the days when not much happens between periodic assessments.&nbsp; Today, events that at first seem insignificant can quickly morph into serious disruption risks before your next assessment is due.&nbsp; The current ever-evolving, rapidly changing risk environment requires continuous monitoring.</p> <p>As we&#39;ve experienced during this pandemic, suppliers risk profiles have been consistently in flux as facts, policies and the cascading effects change from day-to-day. It&rsquo;s critical that suppliers are monitored continuously. Continuously monitoring suppliers across a broad risk framework provides the critically important real-time risk intelligence resilient enterprises need to stay on top of their suppliers changing risk profiles.</p> <p>As a reaction to COVID-19, enterprises are looking to build resiliency and disruption-proof their supply chains and operations. The problem is no one knows what form the next global business disruption will take, but there is a solution. Enterprises need to integrate a proactive, continuous risk monitoring approach across the entire sourcing lifecycle. Continuously monitoring a broad view of all the supplier and location risks discussed here will provide enterprises with the real-time intelligence and early warning required to ensure resiliency whatever comes next.&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/risk-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/cyber-risk" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cyber Risk</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-risk" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Risk</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/risk-intelligence" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Intelligence</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 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/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/covid-19" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">COVID-19</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/coronavirus" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">coronavirus</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="Rethinking the Future for Resilient Sourcing and Beyond - Future of Sourcing" addthis:url="http://futureofsourcing.com/rethinking-the-future-for-resilient-sourcing-and-beyond"><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, 29 Jun 2020 16:52:14 +0000 Atul Vashistha 1802 at http://futureofsourcing.com http://futureofsourcing.com/rethinking-the-future-for-resilient-sourcing-and-beyond#comments Online Collaboration is Needed Now More Than Ever http://futureofsourcing.com/online-collaboration-is-needed-now-more-than-ever <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/Copy%20of%20FoS%20Header%20Images%20%2852%29.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2852%29.png" title="technology, automation and data acheives business continuity" class="colorbox" rel="gallery-node-1785-OgKfc8BLt6Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2852%29.png?itok=_sJpTrNG" width="624" height="325" alt="technology, automation and data acheives business continuity" 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"> <p><em>In <a href="https://futureofsourcing.com/the-need-for-online-collaboration-now-more-than-ever" target="_blank">Part 1</a> of this two-part article, we looked at what procurement and finance teams can do now to improve collaboration and effectiveness in the face of business disruption. Part 2 looks at technology, automation and data as critical components in making that happen, especially as organizations scramble to achieve business continuity working with remotely-based teams.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/the-need-for-online-collaboration-now-more-than-ever">THE NEED FOR ONLINE COLLABORATION — NOW, MORE THAN EVER!</a></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"> <p>We know that procurement is often a juggling act! We use decent supplier relationships, purchasing power, and any other tools in our belt to secure best payment terms, highest quality purchases at the lowest price, or indeed best value, to ensure vital continuity of supply against a backdrop of supply chains becoming ever more complex and volatile!</p> <p>All of this balancing is difficult while also trying to keep an eye on cash flow and keeping our friends in finance happy, who may not always appreciate the balancing act that&rsquo;s going on. While cash flow is their key metric, even early payment discounts can be seen negatively in terms of impact on available cash.&nbsp;</p> <h1>How can better collaboration help?</h1> <p><strong>A. Extend your payment terms</strong>. Sorry for pointing out the obvious, but if you don&rsquo;t know what your payment terms actually are and whether you&#39;re really working to them, the next steps are not going to be of much use to you!</p> <p>Extending payment terms frees up valuable cash flow, so it has a positive impact on the balance sheet to help fund investments. However, suppliers can&rsquo;t always accommodate very long terms. Pushing this out can not only damage the relationship and adds time to negotiations, but also ultimately drives up their operating costs, which will then get passed on to you.</p> <h1>What can we do to balance the cash flow needs of suppliers and buyers?</h1> <p><strong>B. Supply chain financing,</strong> or using a third-party funder, is an excellent win-win result to ensure your suppliers are paid early. But as a buying organization, you can pay when you like, on your finance-friendly extended terms. You benefit from holding onto the cash for the full payment term, but more importantly, the supplier gets paid when they need to. This can speed up pesky negotiations and ensure a happy CFO because cash flow is positive. Not always, but often the funder will perhaps take a small cut, but that can usually be paid for by potentially combining this with early payment discounts.</p> <p><strong>C.&nbsp;Early payment discounts&nbsp;</strong>- Buyers agree to pay suppliers early in exchange for a discount. These can be fixed discounts (e.g., 2% discount when paid on or before day 10 of a 30-day payment term) or on a sliding scale (dynamic discounting) up to the invoice due date. The discount can add to the bottom line and a small slice can be used to fund the factoring activity.&nbsp;<span style="font-size: 13.008px; font-weight: normal;">All of this requires slick processes for managing your procure-to-pay process. If you don&rsquo;t have an automated tool for managing this process, it will be challenging to ensure you are paying on time, let alone have the flexibility to change up the discounting process. Of course, technology will massively help here, to both reduce cycle times and control and implement dynamic discounting with your suppliers!</span></p> <p>A critical area to promote collaboration is that of&nbsp;<strong>risk management!</strong></p> <h1>Internal and External Risk</h1> <p>We can split risk (and associated data collected to support your understanding of it) out into two main buckets: Risk data that can be collected <strong>externally</strong>&nbsp;and that which lurks within &mdash; <strong>internal risk data</strong>. Either way, a perfect place to start is to correlate impact and mitigation at a supplier level.</p> <p>Once you have individual supplier risk assigned, with the right technology you can group this risk by any associated data that you have collected against the supplier to see compound effects or translate it to financial exposure. If you have data recorded for a supplier, then you measure, mitigate or report against it and start filtering into meaningful groups in the event of a crisis or during risk planning.</p> <p><strong>External Data </strong>&ndash; This may be as simple as automating and scoring supplier financial info in the form of data input from D&amp;B, or via feed from external risk services like EcoVadis and Resilience 360. You might want to extend this across digital risk, plugging into new technology offerings like Dark Beam &mdash; companies designed to test your cyber weaknesses or those of your suppliers. These tools are powerful and also help you understand up-to-date changes in risk profile without admin time for most of the checks that could happen manually.</p> <p>Unfortunately, even with technology, 65% of CPOs have limited visibility beyond their <strong>tier 1 suppliers,</strong> so more work may need to be done to unearth risk lurking further up the supply chain.</p> <h1>The Value of Your Information</h1> <p>A vast source of information that you can count on being <strong>relevant</strong> is your <em>own</em>. When you have a fully-integrated platform pulling from one master data source, you can start to do some clever things with pulling real data in from your own systems and see what&rsquo;s going on in other departments, without relying on lengthy meetings to keep everyone up to date.</p> <p>For example, what if a supplier is always late paying &ndash; or worse, they&rsquo;ve gone into insolvency? You want your buying team to know about this asap in order to reach out to them and consider the impact on the supply chain and make alternative supply arrangements and stop placing orders.</p> <p>It&rsquo;s that viability of dispute flags or translating this back to a negative score on the supplier&rsquo;s scorecard that brings value. Once an automated way of flagging risks is implemented at a supplier level, you may want to implement methods of tracking improvements to measure trends. Again, difficult to manage if you&rsquo;re relying on manual processes or human judgment!</p> <p>Ongoing Supplier Performance should be a careful balance of automatically-collected data pulled in from both internal and external sources. That doesn&rsquo;t mean removing the need for human understanding of the data; you just need everything in one place to enable people to make informed decisions, quickly.</p> <h1>What&rsquo;s In It For You?</h1> <p>It may seem obvious, but collaborative working leads to a whole host of benefits for the organization! Aside from the fact that we now don&rsquo;t have a choice but to pay attention to how individuals and teams interact with each other, we really can measure the benefits of finance and procurement teams working together.</p> <p><img alt="Ways Procurement and Finance Can Work Together" src="https://futureofsourcing.com/sites/default/files/Procurement-Finance-Working-Together.png" style="width: 452px; height: 182px;" /></p> <p>What have we learned?</p> <p>Working from home restricts our ability to continue with the status quo when the status quo is a manual, disjointed process. Maybe one thing to emerge from the Coronavirus crisis will be the prioritization of automated and collaborative ways of working as a fundamental requirement of our businesses. One thing is for sure, those that do have the tools to collaborate easily online certainly recover faster than those without.</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/procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procurement</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/procure-to-pay-p2p-0" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Procure-To-Pay (P2P)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/finance" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Finance</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/risk-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Management</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="Online Collaboration is Needed Now More Than Ever - Future of Sourcing" addthis:url="http://futureofsourcing.com/online-collaboration-is-needed-now-more-than-ever"><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, 01 Jun 2020 17:54:36 +0000 Sophie Pope 1785 at http://futureofsourcing.com http://futureofsourcing.com/online-collaboration-is-needed-now-more-than-ever#comments How to Source a Supply Chain Risk Management Services Partner http://futureofsourcing.com/how-to-source-a-supply-chain-risk-management-services-partner <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/Copy%20of%20FoS%20Header%20Images%20%2842%29.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2842%29.png" title="Supply Chain Risk Management Services" class="colorbox" rel="gallery-node-1763-OgKfc8BLt6Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2842%29.png?itok=5XWRXCBZ" width="624" height="325" alt="Supply Chain Risk Management Services" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/scrap-early-new-product-excel-boms-to-accelerate-sourcing">Scrap Early New Product Excel BOMs to Accelerate Sourcing</a></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"> <p>The Coronavirus (COVID-19) pandemic and 2020 recession are creating new stresses and disruptions in the global supply chain that are now presenting themselves. In today&lsquo;s hyperconnected economies, the response to supply chain risk has primarily been &ldquo;reactive&rdquo;. Traditional, &ldquo;cost down&rdquo; sourcing efforts often amplify and expedite supply chain risk (e.g., moving contracts from a troubled supplier, delaying supplier payments, competitive bidding, etc.) Existing Supply Chain Risk Management (SCRM) evaluation tools and techniques also utilize &ldquo;lagging&rdquo; financial indicators (e.g., cost trends, profit margin, sales growth, etc.).</p> <p>The great recession that lasted for 18 months from December 2007 to June 2009 provides invaluable learnings that are already being applied to maintain supply. Each recession and supply disruption event is composed of unique variables but proven SCRM strategies, processes and tools can be consistently applied to quantify, remediate, and mitigate supply risk.</p> <p>These are volatile times where continuously addressing supply chain risk is making the difference between company successes and failures.</p> <h1>Choosing a SCRM Managed Services Partner</h1> <p>In my experience, it&rsquo;s the messy supply chain risk stuff behind the scenes that customers never see, which can make or break a company during massive economic contractions and expansions. Proactive supplier assessments, disruption mitigation, and product resourcing can determine company success and failure. We certainly don&rsquo;t have all the answers, but we recently deployed several new solutions for companies looking to <a href="https://www.industrystarsolutions.com/blog/2018/09/5-steps-rapid-outsourcing-success/" target="_blank">outsource</a> their Supply Chain Risk Management (SCRM) needs to a managed services provider. We hope that these offerings will help aid the US recovery rate, ushering in more innovation, creating more exciting positions, and making an impact on some of the world&rsquo;s most pressing challenges.</p> <p>In this blog I wanted to share my perspective on managing supply chain risk along with the big mistakes companies make when choosing an SCRM managed services supplier, and some things to think about if you&rsquo;re planning on hiring one.</p> <h1>Find SCRM Firm that has Supported Companies Like Yours</h1> <p>You&rsquo;d be amazed at the number of people who provide input on topics in which they have no experience. University professors who teach supply chain and risk, but never managed a supply chain, or firms that develop global products, but never proactively considered risks while taking designs into manufacturing, the list goes on. Partnering with a firm that&rsquo;s managed supply chains like yours is critical.</p> <p>Managing risk during a recession and then doing so more proactively moving forward isn&rsquo;t for the faint of heart, it&rsquo;s hard. You want a firm that understands the task at hand and will have your back. You want a firm that won&rsquo;t turn adversarial when the going gets tough but will instead bend over backwards to do what it takes to succeed.</p> <h1>What to Look for in an SCRM Supplier</h1> <p>During this major disruption, companies might have more limited capital and many newer needs. Investing further and more proactively in supply chain and manufacturing &ndash; the people, processes, technology, equipment and tooling &ndash; is prohibitive. Managed services, e.g., Supply Chain Risk Management as a Service and/or Supplier Quality as a Service, can be a great alternative to take advantage of lower-cost flexible support that scales with your business more proactively.</p> <p>A precursor to this type of support is business process outsourcing (BPO), a method of subcontracting various business-related operations to third-party suppliers. Today, cloud software, and new technologies &ndash; e.g., artificial intelligence and blockchain &ndash; are enabling more modern &ldquo;pay as you go&rdquo; on-demand risk management models.</p> <p>Companies are moving beyond outsourcing non-core services to partner with a newer breed of BPOs, technology-enabled service providers, to enhance risk management capabilities while also shortening product time to market, using variable cost structures, fostering innovation, and yes, lowering costs. Today, companies across industries and of all sizes can outsource part or all their day-to-day SCRM operations.&nbsp;</p> <p>Supply chain risk management is evolving rapidly and, when used strategically, can be the element to enable a supply chain competitive advantage. Look for a firm that has developed in-house software technology to ensure you keep pace with advancements, a flexible risk management model to give you operational flexibility, and predictive visibility insights, so you remain competitive. The net result should be to acquire world-class risk management capabilities at a fraction of the cost.</p> <p>In general, services firms have a bad stereotype of performing the old bait-and-switch where they&rsquo;ll bring in experts for the proposal review and then staff inexperienced resources once a contract is closed. A firm should outline specific people, names, titles and skill sets that&rsquo;ll support you to enable your company to utilize the best possible resources.</p> <h1>Balance Being Proactive with Cost and Agility</h1> <p>Firms, especially those that are technology-enabled, should offer several engagement options, which may include 1) time and materials, 2) phase, 3) project and/or 4) on demand.&nbsp;It&rsquo;s critical you receive a fair price for managing your supply chain risks &ndash; this ensures you can compete; however, the <a href="https://www.industrystarsolutions.com/blog/2017/01/making-switch-supply-partner-mindset-moving-beyond-lowest-cost-sourcing/" target="_blank">lowest-cost option</a> isn&rsquo;t always the best one. Instead, a scalable option that adjusts with you over time is usually preferred. For many companies today, flexibility is more important than cost.</p> <p>Service quality is another way to measure value. It takes more time to uncover but is worth it to mitigate firm selection risk. Asking for customer references &ndash; i.e., talking with three similar customers &ndash; is vital. And since you&rsquo;ll be working with them a lot, meeting with the firm several times to ensure cultural alignment is essential.</p> <p>Service quality reveals itself in little things like answering your calls promptly, which is essential for companies where things change quickly during disruptions and economic turmoil. Service quality can also be the result of the firm&rsquo;s underlying processes, as these are what determine repeatable results. Talk to firms about what it&rsquo;d look like to work with them daily. What would a kickoff agenda look like? Who&rsquo;ll be your program manager? Details matter, so ask these questions before engaging a firm charged with bringing your vision to life.</p> <p>There are five resource options available to acquire SCRM talent and technology to empower results.</p> <ul> <li><u>Option 1 Internal:</u>&nbsp; Requirements - Build, invest and maintain your own SCRM Team, processes and technology.&nbsp; Pro - Dedicated team.&nbsp; Con - High cost/low agility.</li> <li><u>Option 2 Consulting:</u> &nbsp;Requirements - Source Consulting firm.&nbsp; Pro - Industry experts.&nbsp; Con - Short term focus.</li> <li><u>Option 3 Software:</u>&nbsp; Requirements - 1 + Source Software.&nbsp; Pro - Predictive risk insights.&nbsp; Con &ndash; Need experts to leverage technology.</li> <li><u>Option 4 Hybrid:</u>&nbsp; Requirements - Combinations of 1, 3-5.&nbsp; Pro - Best options.&nbsp; Con - Managing options</li> <li><u>Option 5 SCRM Managed Services</u>: Requirements - Source technology-enabled Managed Services firm.&nbsp; Pro - On-demand support turnkey people + software.&nbsp; Con - Newer approach.</li> </ul> <p>Align SCRM with supplier goals to create a competitive advantage. Technology-enabled SCRM Managed Services firms will use a support model that is a mix of fixed and variable costs, scales on-demand to lower supply chain people, software and spend costs while ensuring consistent alignment. Support costs are composed of two simple fees, one for Managed Services and one for Service. In other words, a 4as-needed variable cost (Service Fee) and a lower fixed weekly cost (Managed Services Fee).</p> <h1>How to Align with SCRM Partner for Long Term Success</h1> <p>Subject matter experts are better than one-size-fits-all risk management generalists. You&rsquo;re outsourcing to gain expertise. Thus a targeted firm &ndash; i.e., an SCRM firm &ndash; should generate superior results supporting proactive mitigation, as opposed to a generalist management consulting firm per se that focuses on accounting. In general, smaller firms that&rsquo;ll provide you with more experienced resources, focused attention and tailored support will be better than larger ones. A firm that can also offer ongoing day-to-day supply chain support during and post-recovery can free up your time, allowing your business to better compete and recover in the marketplace.</p> <p>Part of the challenge with this pandemic is the uncertainty of future sales. Many firms might verbally communicate that they&rsquo;re easy to work with, so their contracts should reflect this in the short and long term. You need a long-term partner that&rsquo;s going to take care of issues, not send you a bill for every problem that arises. You need an agile partner that can support your needs and flex up and down, especially during the recovery.</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/supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/risk-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/cost-savings" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Cost Savings</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</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 to Source a Supply Chain Risk Management Services Partner - Future of Sourcing" addthis:url="http://futureofsourcing.com/how-to-source-a-supply-chain-risk-management-services-partner"><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> Sun, 17 May 2020 22:21:18 +0000 William Crane 1763 at http://futureofsourcing.com http://futureofsourcing.com/how-to-source-a-supply-chain-risk-management-services-partner#comments COVID-19 AND TRADE REGULATIONS http://futureofsourcing.com/covid-19-and-trade-regulations <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/Copy%20of%20FoS%20Header%20Images%20%2839%29.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2839%29.png" title="COVID-19 TRADE" class="colorbox" rel="gallery-node-1758-OgKfc8BLt6Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2839%29.png?itok=RaVKu6or" width="624" height="325" alt="COVID-19 TRADE" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-procurement-can-help-address-the-covid-19-crisis">How Procurement Can Help Address the COVID-19 Crisis</a></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"> <p>The COVID-19 pandemic poses fundamental questions for governments and businesses about the resilience of international trade.</p> <p>How to ensure supplies of crucial goods (medical supplies, food) that are dependent on global supply chains?</p> <p>How to survive the immediate crisis and be best placed, with suppliers and customers, to resume production as soon as conditions allow?&nbsp;</p> <p>How to protect national industries while retaining the benefits of free and fair international trade?</p> <p>The immediate responses have thrown up an array of new regulations together with temporary relaxations of existing rules. These recent developments and COVID-19, primarily from a UK/EU perspective, have had an impact on supply chains, tariffs, export insurance, customs, export controls and sanctions.</p> <p>The impact of COVID-19 on international, and indeed domestic, supply chains are profound. The character of the pandemic is such as to wreak maximum mayhem. Cycling from a supply-side crunch as production in Asia was hit, to a demand-side crisis as companies in Europe and the US canceled orders, and back again to supply constraints as reinfections break out and supplier companies fail to survive.</p> <h1>Food Supply Chain</h1> <p>The food supply chain, in particular, is increasingly struggling with quarantines, labor shortages, shipping interruptions and export restrictions to ensure domestic consumption needs are met.</p> <p>Russia has proposed a seven million tonne grain export quota for April through June; benchmark rice prices in Thailand have risen more than 11% since the end of February and wheat futures in Chicago have risen 15% since mid-March. Further food security protectionist measures look likely.</p> <p>Beyond the food sector, manufacturers and retailers are torn between protecting their own financial position on one hand and extending support to their suppliers on the other,to ensure that they survive until business resumes. While some have canceled orders and extended payment terms, others have taken delivery of already produced goods and prioritized vendors that supply parts and raw materials critical to revenue generation.</p> <h1>Impact on Freight</h1> <p>The pandemic is undercutting sea freight and raising airfreight prices simultaneously. Order postponements and cancellations threaten to leave shipping containers piling up at ports and warehouses full. Ships are traveling on longer routes than usual, deliberately delaying the arrival of the cargo, but are likely soon to face falling demand and a consequent hit to freight prices. At the same time, exports of essential goods face sharply increased demand for airfreight capacity, combined with a reduction in supply as passenger jets, which usually carry some cargo, due to airlines grounding part or all of their fleet.</p> <p>For the longer term, the pandemic is exposing vulnerabilities in both critical and non-critical supply chains and may accelerate the re-shaping of global trade that was already underway:&nbsp; &nbsp;</p> <ul> <li>Companies are starting to re-evaluate the resilience of current &lsquo;just-in-time&rsquo; business models.&nbsp; Thin inventories sourced from around the world have always posed a risk, but many companies are now re-evaluating that risk and looking to build up buffer stocks produced closer to home.</li> <li>Governments will need to review the risks to national and economic security, and not only for supplies of pharmaceuticals, medical equipment and food. How far it is reviewed nationally or multilaterally is critical in avoiding a wave of protectionist trade and investment measures.</li> </ul> <p>On 27 March, <a href="https://www.consilium.europa.eu/media/43072/final-g20-leaders-statement-26032020.pdf" target="_blank">the G-20 leaders</a> recognized the severe risks that the pandemic poses to international trade. They pledged to work both to &lsquo;<em>ensure the flow of vital medical supplies, critical agricultural products, and other goods and services across borders&rsquo;</em> and at the same time to keep emergency measures aimed at protecting health &lsquo;<em>targeted, proportionate, transparent, and temporary&rsquo;</em> in the interests of realizing &lsquo;<em>a free, fair, non-discriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open.&rsquo;</em> The challenge of translating these objectives into action remains daunting.</p> <p>The changes to trade regulations and trade flows we have seen so far are only the start of the response to COVID-19.</p> <p>There will be many more challenges to come as the crisis evolves, and there will be a time when regulators begin to unwind the temporary measures that are in place.</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/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/global-supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Supply Chain</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/trade" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Trade</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="COVID-19 AND TRADE REGULATIONS - Future of Sourcing" addthis:url="http://futureofsourcing.com/covid-19-and-trade-regulations"><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 May 2020 17:37:00 +0000 Andrew Hood 1758 at http://futureofsourcing.com http://futureofsourcing.com/covid-19-and-trade-regulations#comments COVID-19: Where is your supply disruption? http://futureofsourcing.com/covid-19-where-is-your-supply-disruption <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/Copy%20of%20FoS%20Header%20Images%20%2821%29.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2821%29.png" title="Coronavirus map" class="colorbox" rel="gallery-node-1737-OgKfc8BLt6Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2821%29.png?itok=19pm3Tia" width="624" height="325" alt="Coronavirus map" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/reduce-supply-chain-vulnerabilities-with-strategic-sourcing">Reduce Supply Chain Vulnerabilities with Strategic Sourcing</a></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"> <p>When the first few cases of Coronavirus (COVID-19) were detected just four short months ago, few could have expected what has now become our new reality. We are in the midst of a global pandemic outbreak that tragically continues to claim the lives of thousands and disrupt the livelihoods of countless others. On top of that, it&rsquo;s also causing serious business, supply chain and economic disruptions worldwide. From shortages in supply and talent, to quarantine and border closures, the impact is increasing by the day, continuing to wreak havoc on businesses and supply chains.</p> <h1>Coronavirus Impacts on the Supply Chain</h1> <p>The effects of coronavirus are trickling throughout entire end-to-end supply chains. Quarantines, travel bans, social distancing measures and other restrictions are resulting in production slowdowns, delayed land pick-up and slowed seaport and air operations. On top of that, these travel bans and logistic hurdles make it even more difficult for procurement to properly identify alternate routes and bring new suppliers onboard.</p> <p>According to riskmethods&rsquo; customer supply chain intelligence, 81% of manufacturing companies are currently experiencing supply problems due to the Coronavirus. Additionally, their customers have experienced more than 46,000 supplier sites affected in China. Perhaps even more alarming, there&rsquo;s been a 44% rise in force majeure risk and a 38% increase in production shutdowns. When suppliers can&rsquo;t fulfill contracts, it has a trickle-down effect across the supply chain and globalized economy. And as the crisis persists, expect to see a spike in financial risks relating to the viability of suppliers and manufacturers. In fact, of all related cases of riskmethods&rsquo; customers&rsquo; supply chains, more than half of coronavirus-related threats indicate financial distress and instability (56%), which accounts for a 45x increase since January 22, 2020.</p> <p>Decreased consumer spending is also further complicating global supply and demand. Not only are certain products simply not available in many stores &ndash; like the &ldquo;<a href="https://www.forbes.com/sites/carlieporterfield/2020/03/20/heres-why-the-toilet-paper-shortage-is-only-temporary/#289cf5e42672" target="_blank">toilet paper shortage</a>&rdquo; in the U.S. &ndash; but consumer behavior is changing dramatically. With many areas around the world facing quarantines and shelter in place orders, consumers are focused on necessity items &ndash; food, beverages, medicine, toiletries, etc. &ndash; rather than keeping up with the latest fashion trends, for example. As the decrease in spending due to fear continues, it will slow top-line growth, impacting the upstream supply chain.</p> <h1>What Can Procurement Leaders Do?</h1> <p>In the short term, organizations should actively assess where they have additional capacity in unaffected areas and redeploy that capacity to cover shortages elsewhere. But in order to understand the impact on the production and delivery of goods, enterprises need enhanced monitoring and better visibility into their supply chain. The sooner organizations can increase their visibility, the more quickly they can respond and mitigate the exposure.</p> <p>There are four critical questions supply chain and procurement leaders must answer right now:</p> <ol> <li>Which of your parts and products are affected?</li> <li>Which of your suppliers are impacted?</li> <li>How will the interruption affect lead times and pricing?</li> <li>Which customers are affected?</li> </ol> <p>Understanding the current state of your supply chain and factoring in unfolding events can be a difficult process, but it is an essential element of successful mitigation efforts. Visibility into your organization&rsquo;s risk exposure enables you to be better equipped to identify, assess and mitigate threats to the end-to-end supply chain.</p> <p>If there&rsquo;s two supply chain takeaways we can learn from this crisis, it&rsquo;s the importance of monitoring risk and diversifying your supply base. As we&rsquo;ve seen unfold, organizations that have been overly reliant on a small set of suppliers or a single country from a sourcing perspective, and those that are failing to continuously monitor and respond to rapidly evolving supplier risk across the globe, are facing severe supply disruptions. The other lesson: organizations should always be preparing for the next unpredictable event by prioritizing contingency plans for disruption and non-compliance scenarios.</p> <p>The effects of COVID-19 aren&rsquo;t going to disappear anytime soon. But we will overcome it &ndash; we always do. The question is will we learn our lesson? It&rsquo;s not a matter of &ldquo;if&rdquo; the next crisis will hit, it&rsquo;s a matter of &ldquo;when,&rdquo; and we need to be prepared.</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/global-supply-chain" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Supply Chain</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/suppliers" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Suppliers</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/global-sourcing-procurement" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Sourcing 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="COVID-19: Where is your supply disruption? - Future of Sourcing" addthis:url="http://futureofsourcing.com/covid-19-where-is-your-supply-disruption"><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> Sun, 12 Apr 2020 18:06:12 +0000 Bill DeMartino 1737 at http://futureofsourcing.com http://futureofsourcing.com/covid-19-where-is-your-supply-disruption#comments Leveraging Behavioral Data in Negotiations http://futureofsourcing.com/leveraging-behavioral-data-in-negotiations <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/Copy%20of%20FoS%20Header%20Images%20%2814%29.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%2814%29.png" title="Behavioral Data in Negotiations" class="colorbox" rel="gallery-node-1729-OgKfc8BLt6Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%2814%29.png?itok=Y0MIDxSm" width="624" height="325" alt="Behavioral Data in Negotiations" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/building-supplier-and-sourcing-relationships">Building Supplier and Sourcing Relationships</a></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"> <p>Knowing the behavioral history of a supplier prior to negotiations is essential to understand the reasons why a supplier is likely to offer optimal prices and service level agreements (SLA).</p> <p>In the past, siloed and in-person negotiations often revealed insights about supplier behavior, but these insights were usually ignored because there was no empirical way for a sourcing professional to capture, share, and leverage this behavioral data cross-functionally.</p> <p>Now, with the rapid digitization of procurement, a sourcing professional can use an AI sourcing enablement tool to learn what makes a supplier willing to come to the table ready and willing to sign on the dotted line.</p> <p>But having access to data is not enough. A procurement professional needs to understand, process, and implement a supplier&rsquo;s behavioral data to help build a relationship that empowers the supplier and brings value to her company. Learning about supplier responsiveness, supplier personas, and compliance is a great first step in understanding the value of behavioral data in negotiations.</p> <h1>Responsiveness</h1> <p>Tracking a supplier&rsquo;s RFP response time can provide the procurement professional significant insights into a supplier&rsquo;s likelihood to be a partner. For example, if a supplier participates in many RFPs annually across categories, tracking the supplier&rsquo;s response time across your organization&rsquo;s requests can help one identify into which categories the supplier feels most comfortable and competent.</p> <p>Responsive time and attention to detail is the essence of responsiveness. They are indications of how a supplier will perform as a partner. Responsiveness is generally part of a larger corporate culture and will likely transcend the company from sales rep to account manager, post-award.</p> <p>The data shows that the more responsive the supplier, the more likely it is that they will partner with an organization. Taken one step further, responsiveness is often correlated with suppliers who are more likely to meet savings expectations.</p> <p>The data also shows that as one tracks their data over the years, one will better understand their suppliers: their bid interests, their best-matched categories of spend, and where the organization and the supplier can add value.</p> <h1>Personas</h1> <p>Tracking <em>how</em> a supplier meets savings expectations and submits pricing can give a procurement professional an indication of how a supplier negotiates. For example, if a supplier meets expectations with little fanfare in negotiation, one may call them &ldquo;amicable.&rdquo; In the alternative, if another supplier still does not meet the organization targets after 14 rounds of negotiation, one may call them &quot;bullish.&quot;</p> <p>By tracking how suppliers meet or don&rsquo;t meet expectations (including those in cross-functional notes to your team) can provide valuable insight. Perhaps a vendor is only bullish in specific categories or only with certain sourcing managers. Perhaps a new supplier is &ldquo;amicable&rdquo; until they are an awarded incumbent, and then they switch to &ldquo;bullish&rsquo; once they are in the door.</p> <p>While persona data points are far less concrete than response time, assigning criteria and parameters around submission criteria can help a procurement professional assign persona to suppliers in a request. And tracking cross-functionally cangather insights that lead to optimizing requests, selecting partners, improving performance and reducing churn.</p> <h1>Compliance</h1> <p>It is easy to set submission expectations at the outset of a negotiation. It is just as easy and important to track a supplier&rsquo;s compliance with those expectations.</p> <p>For instance, if one requests a digital and a hard copy and does not receive both, make a note of it. These compliance issues may be small but tracking them may open one&rsquo;s eyes to some alarming trends. If a supplier fails to comply with a bid packet mandates request, it may indicate that a sales rep or organization is not detail-oriented or is not really listening to the needs of the organization. In this example, it may be time to stop inviting them to submit bids.</p> <p>Having behavioral data readily available is essential for potential bid contest situations and in certain cases can prepare one for an audit.</p> <h1>Final Thoughts</h1> <p>Behavioral data in supply chain analytics is as invaluable to the procurement professional as pricing data. Now more than ever, this data is easy to track and share. It&rsquo;s the responsibility of the procurement professional to know and understand behavioral data and use it to benefit all parties in the supply chain.&nbsp;&nbsp;</p> <p><em>&ldquo;Without knowledge and understanding, one tends to become a passive spectator rather than an active participant in the great decisions of our time.&rdquo; -Diane Ravitch</em></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/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/request-for-proposal-rfp" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Request for Proposal (RFP)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/service-level-agreements-slas" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Service Level Agreements (SLAs)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/contracts" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Contracts</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="Leveraging Behavioral Data in Negotiations - Future of Sourcing" addthis:url="http://futureofsourcing.com/leveraging-behavioral-data-in-negotiations"><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 Mar 2020 15:35:09 +0000 Christian Ries 1729 at http://futureofsourcing.com http://futureofsourcing.com/leveraging-behavioral-data-in-negotiations#comments Do you trust your supplier data? http://futureofsourcing.com/do-you-trust-your-supplier-data <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/Copy%20of%20FoS%20Header%20Images%20%285%29.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Copy%20of%20FoS%20Header%20Images%20%285%29.png" title="Supplier data" class="colorbox" rel="gallery-node-1716-OgKfc8BLt6Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Copy%20of%20FoS%20Header%20Images%20%285%29.png?itok=Jk2qJVOf" width="624" height="325" alt="Supplier data" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/supplier-collaboration-sharing-influence-for-shared-success">Supplier Collaboration: Sharing Influence for Shared Success </a></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"> <p>It is no secret that poor supplier data is the single largest barrier facing successful eProcurement transformation. Organizations in all industries, regardless of size, are susceptible to massive budget overruns or outright project failure without a well-thought-out data acquisition strategy.</p> <p>Not convinced?</p> <p>Just last year the City of New York ran $54 million over their eProcurement transformation budget. Unfortunately, this is not an isolated incident. More and more organizations are flocking toward software to solve <a href="http://info.sig.org/sig-university-semester-2-ciap-enrollment" target="_blank">fundamental data issues</a>. However, software is only as good as the data housed within it and all eProcurement software acquires data the same way.</p> <h1>Better Supplier Data is Needed</h1> <p>Are supplier portals, one-time enrichment exercises and internal data mining scalable solutions to the ever-growing issue (dare I say opportunity)? Supplier data, in some capacity, is involved in EVERY transaction an organization makes. We base entire supply chain-related business decisions on the analytics our software provides, yet this software is running off point-in-time snapshots of data that go stale in a matter of hours. Frankly, I find it irresponsible that we are basing decisions of this magnitude on inaccurate information.</p> <p>Need further validation? According to the <a href="https://scm.ncsu.edu/wp-content/uploads/2018/11/2nd-Annual-Data-Governance-Data-Quality-and-AI-Report-2018.pdf" target="_blank">2018 Data Quality and Governance Study</a> run by the Supply Chain Resource Cooperative at NC State University, &ldquo;Only 15% of respondents believe their existing systems are capable of producing clean data that can be trusted&rdquo; and &ldquo;75% of businesses say that poor quality data has made it challenging to achieve their digital transformation plans.&rdquo;</p> <p>When will we learn that software can only function to its full capacity when running on trusted and validated data? You have probably heard the phrase &ldquo;garbage-in, garbage-out,&rdquo; but who has thought about the resolution to the garbage-in problem? The phase itself insinuates that clean data must go in <em>first</em> to achieve reliable results.</p> <h1>A Call to Action</h1> <p>In order to restore trust in enterprise data &ndash; or to establish trust for the first time &ndash; organizations must have a well-thought-out data acquisition strategy. But what does it mean to have trustworthy supplier data? Supplier data is always moving, creating the need for proactive monitoring of this information. If an organization can capture ever-changing information, then they will need a way to instantly analyze the information and leverage predictive capabilities to make the data actionable. Opportunities can be lost in seconds and risk elements can cripple healthy supply chains overnight.</p> <p>Most professionals in our space recognize these truths, as the same study referenced above states that &ldquo;92% of businesses believe that high-quality data is the fuel for digital transformation.&rdquo; The only logical solution to the problem is to have an autonomous data enrichment engine that can power technology investments. Autonomous data enrichment captures ever-changing supplier information allowing technology to take advantage of reliable data at that specific point in time.</p> <p>As an industry we need to recognize that we are in a massive bubble &ndash; and it will burst &ndash; if we don&rsquo;t go back to the drawing board and rethink our data strategies. If we do, and we must, then we may be able to finally deliver on the promise of digital transformation and all that will mean to the success of our enterprises.</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/supplier-relations" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Relations</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/data-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Data Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</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="Do you trust your supplier data? - Future of Sourcing" addthis:url="http://futureofsourcing.com/do-you-trust-your-supplier-data"><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> Sun, 08 Mar 2020 20:41:57 +0000 Stephany Lapierre 1716 at http://futureofsourcing.com http://futureofsourcing.com/do-you-trust-your-supplier-data#comments Why Businesses Must Be Aware of Brexit Supply Chain Risks http://futureofsourcing.com/why-businesses-must-be-aware-of-brexit-supply-chain-risks <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/Brexit_Supply%20Chain%20Risk%20Management.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Brexit_Supply%20Chain%20Risk%20Management.jpg" title="Why Businesses Must Be Aware of Brexit Supply Chain Risks " class="colorbox" rel="gallery-node-1635-OgKfc8BLt6Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Brexit_Supply%20Chain%20Risk%20Management.jpg?itok=_sS28_Zb" width="624" height="325" alt="" title="" /></a></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>The fact that the U.K.&rsquo;s economy is quite closely linked with the EU only means that a deal or no-deal Brexit will have huge ramifications. It could lead to a supply chain crisis for which businesses need to prepare for unforeseen post-Brexit scenarios.&nbsp;</div> <div>&nbsp;</div> <div>Jill Beadle at Gartner suggested that businesses should establish &ldquo;committees for specific activities, such as IT and supply chain responses.&rdquo; She emphasises the importance of delivering risk assessments and impact analyses, including mapping the supply chain to become aware of unknown risks. &nbsp;</div> <div>&nbsp;</div> <div> <h2>Supply chain, no-deal strategies</h2> </div> <div>I believe that businesses must review their important procurement drivers to assess the effects of Brexit across the supply chain. Businesses should review existing sourcing strategies, supplier contracts and their relationships with existing suppliers to assess the impact of a no-deal Brexit on demand, costs, the ongoing risks to logistics and the continued supply of materials and labour. &nbsp;</div> <div>&nbsp;</div> <div>Check out our key recommendations to de-risk supply chain functions across sourcing, contracts and suppliers.&nbsp;</div> <div>&nbsp;</div> <div style="margin-left: 40px;">1.) <strong>Evaluate your sourcing strategies</strong></div> <div style="margin-left: 40px;">Revisit your category management strategies to understand your category objectives, sourcing strategies and to assess the quantity of work required to source goods in the event of a no-deal Brexit. Businesses must look at aspects of their business that will be grossly impacted by the U.K.&rsquo;s exit from the EU. For those categories where the impact is expected to be significant, businesses must account for the EU exit activity whilst planning these categories.&nbsp;</div> <div>&nbsp;</div> <div style="margin-left: 40px;">2.) <strong>Review contracts and compliance</strong></div> <div style="margin-left: 40px;">You must identify your contract risk profile in line with a range of needs. For example, there could be risks involved where businesses rely on EU funding, as well as limitations on freedom of movement. All this puts an enormous pressure on costs, which affects the availability of labour &ndash; resulting in the need to increase wages, forex and tariffs. Therefore, examining specific contract clauses linked to EU exit readiness such as those related to termination, cost pressures and continuity as a result of legal change will help determine future risk potential.&nbsp;</div> <div>&nbsp;</div> <div style="margin-left: 40px;">3.) <strong>Support supplier partnering</strong></div> <div style="margin-left: 40px;">Work with suppliers to assess the wider market and identify cost and risk drivers in key categories. Create scenario forecasts to identify the most probable outcomes as a result of Brexit. Understand the mitigation plans they have in place, as well as the areas that pose a high risk to their business. Learn how they will support you in a no-deal scenario through their recommendations on robust business continuity plans.&nbsp;</div> <div>&nbsp;</div> <div>Businesses that do not have a contingency plan in place and fail to review their procurement functions will end up having to deal with disruptions in a post-Brexit world.&nbsp;</div> <div>&nbsp;</div> <div> <div> <h2>Reap the benefits of being prepared</h2> </div> <div>Business that have prepared their supply chain functions to face a no-deal eventuality should not consider their efforts wasted if a no-deal situation is avoided. Regardless, executing a comprehensive risk assessment will: &nbsp;</div> <div>&nbsp;</div> <ul> <li>Cover alternative Brexit outcomes</li> <li>Serve as a health check for the supply chain function through identification of risks that may be unrelated to Brexit</li> <li>Enforce the application of supplier management best practices</li> </ul> <div>Deal or no-deal, businesses that risk-proof their procurement functions will stand themselves in good stead overall, simultaneously enabling ample competitive business advantages as well as strengthening the function as a whole.</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/brexit" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Brexit</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/risk-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/contract-construction" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Contract Construction</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="Why Businesses Must Be Aware of Brexit Supply Chain Risks - Future of Sourcing" addthis:url="http://futureofsourcing.com/why-businesses-must-be-aware-of-brexit-supply-chain-risks"><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/europemiddle-eastafrica" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Europe/Middle East/Africa</a></div></div></div> Wed, 20 Nov 2019 17:00:00 +0000 Philip Woode 1635 at http://futureofsourcing.com http://futureofsourcing.com/why-businesses-must-be-aware-of-brexit-supply-chain-risks#comments Supply Chain Transparency Critical to Slowing Down the Amazon Deforestation http://futureofsourcing.com/supply-chain-transparency-critical-to-slowing-down-the-amazon-deforestation <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/Supply%20Chain_Transparency_Amazon.jpg"><a href="http://futureofsourcing.com/sites/default/files/articles/Supply%20Chain_Transparency_Amazon.jpg" title="Supply Chain_Transparency_Amazon" class="colorbox" rel="gallery-node-1633-OgKfc8BLt6Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Supply%20Chain_Transparency_Amazon.jpg?itok=QKtUTdce" width="624" height="325" alt="Supply Chain_Transparency_Amazon" 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"> <p><em>As the magnitude of the Amazon fires has now reached a level in which scientists are confirming that the ongoing destruction can have catastrophic consequences for Brazil and the world, businesses are beginning to reconsider sourcing their supplies from the area in response.&nbsp;</em></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>Over the last months, the Amazon deforestation rate was an area of Manhattan every day, following reports that farmers were clearing land for crop fields and cattle ranches, as the new Brazilian government was opening up the region to economic activity. According to the country&rsquo;s National Institute for Space Research, Brazil (the world&rsquo;s largest beef exporter) had over 72,000 fire outbreaks this year, with more than half of them located in the Amazon. This number represents an 84-percent increase compared to last year.</div> <div>&nbsp;</div> <div>The Amazon is the largest rainforest in the world, a home to one million native people and three million species of plants and animals. The rainforest covers an area about half the size of Europe and is a vital source of carbon that helps to slow down the pace of global warming, absorbing millions of tonnes of carbon emissions every year. With deforestation, the rainforest&rsquo;s capacity to absorb carbon emissions is reducing and the carbon they are storing is released into the atmosphere. Non-profit organisation Mighty Earth estimates that globally there are 1.6 billion acres of degraded land for agriculture to expand without deforestation, however the Amazon continues to be cleared for beef production.&nbsp;</div> <div>&nbsp;</div> <div>Earlier this month, H&amp;M announced that they stopped purchasing leather from Brazil over concerns that the country&rsquo;s cattle industry is the main contributor of the Amazon deforestation. Other companies such VF Corporation, the parent company of North Face, Vans and Timberland followed. While these companies play relatively small roles in the area with VF Corporation sourcing around five percent and H&amp;M one percent of their leather from Brazil, businesses sourcing from the area are increasingly focus on <a href="https://www.futureofsourcing.com/when-style-meets-sustainability-making-responsible-procurement-fashionable" target="_blank">reviewing their supply chains</a>.</div> <div>&nbsp;</div> <div>In a recent statement, Mars announced that they are developing action plans for raw materials linked to deforestation, such as beef and palm oil, and the company&rsquo;s targets for reducing emissions include the impact of agriculture and land use change. Nestle, which sources meat, palm oil, soy and cocoa from Brazil, has also announced that they are monitoring their suppliers and would immediately cease sourcing from suppliers found to be linked to Amazon deforestation.</div> <div>&nbsp;</div> <div>The situation is not only critical in the Amazon, but also in many other parts of the world like Africa, this is a positive step toward <a href="https://www.futureofsourcing.com/the-rise-of-the-ethical-consumer-and-why-businesses-need-to-follow" target="_blank">raising awareness and taking steps to protect the environment</a> and fight climate change.&nbsp;</div> <div>&nbsp;</div> <div>Research suggests that avoiding or at least reducing meat and dairy products is the single most effective way to improve our environmental impact on the planet. With the world&rsquo;s population increasing, the growth in food demand is predicted to reach between 59 to 98 percent by 2050, and as a result, agricultural markets will be impacted &ndash; farmers will have to increase agricultural land and enhance productivity, however this still might not be quick enough to meet the growing demand. In addition, climate change-driven water shortages, rising global temperatures and extreme weather changes will play a key role. To address this, a new approach to food is necessary and according to the UN, switching to a plant-based diet can reduce the burden on the environment and help to fight climate change.</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/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/ethical-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Ethical Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/risk-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Risk Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/corporate-social-responsibility-csr" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Corporate social responsibility (CSR)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/deforestation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Deforestation</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="Supply Chain Transparency Critical to Slowing Down the Amazon Deforestation - Future of Sourcing" addthis:url="http://futureofsourcing.com/supply-chain-transparency-critical-to-slowing-down-the-amazon-deforestation"><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> Sat, 09 Nov 2019 23:36:09 +0000 Franco Vessio 1633 at http://futureofsourcing.com http://futureofsourcing.com/supply-chain-transparency-critical-to-slowing-down-the-amazon-deforestation#comments Sourcing Star Interview: Jerry Durant http://futureofsourcing.com/sourcing-star-interview-jerry-durant <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/Jerry_Durant_FOS%20Individual%20Award_Interview%20Graphic.png"><a href="http://futureofsourcing.com/sites/default/files/articles/Jerry_Durant_FOS%20Individual%20Award_Interview%20Graphic.png" title="Sourcing Star Interview: Jerry Durant" class="colorbox" rel="gallery-node-1619-OgKfc8BLt6Y"><img typeof="foaf:Image" src="http://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Jerry_Durant_FOS%20Individual%20Award_Interview%20Graphic.png?itok=BPrGRPEg" width="624" height="325" alt="Sourcing Star Interview: Jerry Durant" 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"> <p>This October, the&nbsp;<a href="https://futureofsourcingawards.com/?__hstc=215510152.344406f4865c40604cf6029be7e958e0.1543422516683.1570984969656.1571003004265.664&amp;__hssc=215510152.9.1571003004265&amp;__hsfp=847670889" target="_blank">Future of Sourcing Awards</a>&nbsp;will celebrate seasoned veterans whose thought leadership and innovative work in the sourcing field have made a transformative difference over the course of their career. Below, read about Sourcing Star Finalist Jerry Durant, who established the International Institute for Outsource Management (IIOM) with the sole purpose of developing and supporting the service side of the supply chain.</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> <h3><em>How did you get into this field &ndash; was it purposeful or by accident?</em></h3> </div> <div>Quite by accident. In 1985 a long standing customer approached us to find resources to maintain one of their legacy applications. Through the course of discussion about resource and annual costs we jointly reached the conclusion that finding foreign resources might be a solution. &nbsp;After deliberations, bid proposals, visitations and indepth reviews it was concluded to offshore the application to Calcutta.</div> <div>&nbsp;</div> <div> <h3><em>In what ways do you feel your professional contributions have influenced or transformed the industry? (This could be a new approach or methodology, the application of an existing technology in a completely new way, significant thought leadership or even a career of inspiring others.)</em></h3> </div> <div>Aside from the work which culminated in the formation of the International Institute for Outsource Management we had over 15 years in which we repeated called upon to assist buyers but also we saw an ever increasing interest on the part of suppliers. &nbsp;At first it was to seek out work but we saw this as an uphill endeavor because many suppliers fell short in keeping with foreign buyer expectations. As a result we saw this as an opportunity to evaluate supplier viability, giving them a roadmap for development, develop skills appropriate to dealing in an international and culturally diverse climate, and to bolster brand development in a tangibly meaning way. These goals resulted in some of the things which I mentioned in my accomplishments such as the Outsourcing Management Body of Knowledge (OMBOK), Certification as an Outsource/Offshore Project Manager (COOPM), establishing the Outsource Management Research Center (OMRC) and skill development to address an ever changing international business market. In the latter case we were honored to be chosen as a Research Fellow at the Rockefeller Foundation Bellagio Center during the development of the Impact Sourcing Implementation Guide.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>In your opinion, what are the biggest challenges facing the industry today and what should be done to solve them?</em></h3> </div> <div>This is a very interest question since a number of the advisory firms who were knee deep into critiquing outsourcing have gone on to other more vogue pursuits. The challenge today remains in obtaining business but in order to accomplish this suppliers need to shed traditional efforts in order to develop capabilities while forming durable brand. What was once price driven is now focused on value delivery.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>Looking at the whole of your career, what do you consider to be your greatest achievement?</em></h3> </div> <div>Having been self employed for 35 years my greatest achievement has been survival. This would not have been possible without being on top of global trends and to put them into an appropriate context relative to both strategic direction as well as tactical implementation.&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What three words do you feel your colleagues and peers would use to describe you?</em></h3> </div> <div>Practical, Adaptable, Honest/Integrity&nbsp;</div> <div>&nbsp;</div> <div> <h3><em>What advice do you have for those who are new to the profession or considering entering the industry?</em></h3> </div> <div>Goals are achieved through the formation of purposeful value. To accomplish this on an international level we need to fully understand and appreciate cultural differences.</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/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/advisory" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Advisory</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sourcing-star" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sourcing Star</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/future-of-sourcing-awards" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Future of Sourcing Awards</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/offshoring" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Offshoring</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="Sourcing Star Interview: Jerry Durant - Future of Sourcing" addthis:url="http://futureofsourcing.com/sourcing-star-interview-jerry-durant"><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, 25 Sep 2019 00:54:08 +0000 Jerry Durant 1619 at http://futureofsourcing.com http://futureofsourcing.com/sourcing-star-interview-jerry-durant#comments