Ushering in the era of The Internet of Things (IoT) brings with it conceptual and cultural change in supply chain management. Previous processes that were once not possible to automate, now not only function independently, but are capable of sharing data and interacting in such a way as to maximize efficient output.
While the precise impact of IoT is dependent on technology costs outweighing efficiency savings, there are several inherent benefits the supply chain can expect from its introduction.
Launching an all new product ahead of your competition can determine long term market share and resulting profitability. Sourcing professionals have an amazing opportunity to increase the pace at which their companies bring new products to market by condensing the source-to-pay (S2P) process.
Let’s face it — many of our company’s functions still operate largely in silos as we batch our work together to then throw it over the wall to the next team in the value chain. Much lip service has been dedicated to catchy buzzwords like “agile” and “collaborative new product development.” Unfortunately, these newer ways of working together remain largely untapped.
In my previous article, I discussed how procurement teams can help their businesses when buying support or services for open source software. There is another key issue procurement teams will have to understand in relation to implementations of this type–cloud.
It’s well known that 70% of change initiatives fail, mostly due to human factors such as employee resistance to change or lack of management support. On the other hand, when people are fully engaged and invested in change, they are 30% more likely to be successful. While the emphasis is mostly on how the envisioned change will result in a better future, recent research highlights an equally important aspect of change—continuity.
“Open source” describes a specific approach to creating, distributing and using software. Anyone can see how the source code for this software is put together, they can often use this software for free and they can potentially alter it to meet their own needs. But, if something is free, why do procurement teams need to get involved, and when can it lead to potential headaches?