As Peter Drucker famously said, “If you can’t measure it you can’t manage it.” Today, technology tools enable real-time collection and analysis of near endless amounts of big data throughout the value chain. This, coupled with our exponentially growing data, offers an exciting new frontier for which the supply chain is uniquely positioned to unlock hidden waste.
Key Performance Indicators (KPIs)
My last article was an overview of how large enterprises have historically approached supplier diversity initiatives and why they have underperformed.
This article will focus on ways the enterprise can improve diverse supplier inclusion, selection and support practices. I recommend that teams consider leveraging some of these tips best fitting for their respective organizations.
For organizations looking to identify cost savings, increase profitability and get a leg up on the competition, indirect spend management is an ideal place to look. Often considered the backend of procurement – involving expenses like IT services and equipment, professional services, office supplies and HR services – indirect spend actually accounts for a significant portion of overall spend.