Thrust into the spotlight due to the pandemic and now the war in Ukraine, the demand for sourcing professionals to deliver maximum value has never been greater.

To start, "maximum value" is no longer about getting something at the best price – if it ever was. I base the "ever was" on the words of a 20-plus-year industry veteran who has held senior executive positions with a major global brand and stressed that it has never really been about cost savings alone. If it were, they added, they would have left the industry a year and a half after they started.

So, if it isn't about cost savings, what is it about?

It is about agility, resilience, and being strategic. It is also about breaking through existing barriers to achieve optimal outcomes through digital transformation. In other words, the merger of people skills with emerging digital tools such as Life Cycle Contract Management (CLM) solutions.

The Seven Steps to Success in Sourcing paper was written with the above objectives in mind.

Beyond providing an outline of the challenges with which sourcing professionals are now contending, in this article, I will review the paper's "seven steps" within the context of a CLM framework. Included will be a deeper dive into one of the steps – Improving transparency.

Barriers To Agility

The paper talks about the challenges of "cumbersome siloed data" and points out that sourcing professionals are weighed down (and slowed down) by "outdated traditional systems" and "complex, often manual" processes.

While these have been significant issues, they take on new meaning in a post-pandemic world, a new meaning in which supply chain resiliency is being stretched to the breaking point.

As a result, the risk of "slow, inflexible sourcing processes" reduces agility and, with it, the ability to adapt to the at times, unpredictable changes in the marketplace.

A timeless saying is that "life is 10 percent what happens to you, and 90 percent how you react to it."

I was reminded of these words when I recently read the PBS News Hour article How the supply chain caused current inflation, and why it might be here to stay.

According to reports, the 6.2 percent increase in prices over last year was unexpected and, therefore, a shocking turn of events to many experts. Even more troubling is that there is a growing belief that higher consumer prices will become the "new normal." In short, while the rate of inflation may nominally fluctuate over the coming months, its fastest rate of increase in "more than three decades" is a trend that will likely continue in the coming years.

I intend to understand the "why" of what is happening and highlight the consequences of the current crisis - including the means and tools at your disposal to deal with it.

Supply Chain Mess

While there is no single reason for the inflation we are experiencing today, it seems that the catch-all reason given by experts is that our supply chains are a mess.

Starting with the "severe shortages of goods and labor in supply chains," pundits point to a dramatic increase in people buying online due to the pandemic as an exacerbating factor.

For example, industry projections that orders would hit 4.7 million packages a day during this recent holiday go well "beyond what the system can possibly absorb or deliver." However, that is just one part of the story, which brings us back to my opening comments about our reaction.

When The Chips Are Down

The strained relationships between buyers and sellers due to inflation are making headlines around the globe.

We kick off 2022 and the future of procurement with a host of resources, insights and events to help you deliver on procurement 3.0!

January CPO & Executive Virtual Series

SIG's CPO & Executive Virtual Series is an opportunity for the most senior procurement executives to gather with their peers in an interactive virtual environment to discuss their most pressing issues. On January 26, Keith Hausmann, Chief Revenue Officer from Globality, will explore top business priorities procurement can address by reimagining its sourcing models and the major benefits this transformation will bring to the enterprise.

Join us for this executive-level conversation with actionable takeaways!

A Flexible (and Fast!) Way to Get Certified Now

Did you miss our 2021 open cohort start dates? We have fast-track and self-paced options for all programs if open cohort semester timings do not work for your schedule! Have a large group from your organization interested in taking the program together? We also offer closed cohorts for groups of 20 or more that can start when it is best suitable for your team, and volume discounts are available!

Power Hour Webinars

Learning Lab: How to License and Protect Key Information

Join Scientist.com and SIG as they explain the sourcing cycle and explain why protecting your confidential information, IP, and resources are crucial to your long-term success.

To wrap up 2021, we highlight the top 10 SIG Speaks blogs of the year. From sustainable sourcing to McDonald's happy meals, this year we have brought a range of content to fuel your procurement toolkit for the future of the industry!

Women's History Month Spotlight

SIG celebrates diversity and inclusion by highlighting the professional contributions of SIG members for Women's History Month. Here is a round-up of our favorite women authors over the last year to feature!

Lovin’ It: How McDonald’s Happy Meals Saved the SIG Summit

SIG CEO & President Dawn Tiura tells the story of how McDonald’s happy meals turned frowns upside down and saved the SIG Summit.

Sustainable Sourcing 101

This guide provides a basic overview on sustainable sourcing, including links to resources.

New Priorities for Procurement Leaders

CEO of Scanmarket, Betina Nygaard, discusses the new priorities that procurement leaders must adapt to in the post-pandemic workforce.

The Future of Procurement and the Shifting Supply Chains

As we reflect on 2020, the future has to be about possibilities to reshape our supply chains, with lessons from the past unifying ideas to accelerate the recovery and reset needed – for defining the future of work, a thriving planet and equality for all. 

As the need for change and innovation continues to grow, companies are rapidly shifting focus towards outsourcing as a solution to assisting in digital innovation.

For many US companies, understanding the total cost of IT talent services has always been challenging, and is even more concerning now as budgets and resources continue to tighten during the COVID-19 crisis. Here are my thoughts on what to consider as you source IT talent and how to drive the “true India costs” that so many US firms are looking to take advantage of now.

Impact of Uncertainty

Many companies experienced an unanticipated disruption due to the Covid-19 crisis.  Project timelines had to be extended, delivery negatively impacted and enterprise control compromised.  While there’s no doubt that the pandemic has had an impact in some shape or form on all businesses, we have not seen a significant disruption with our clients at SMC Squared, in part due to the business continuity plans that were already set in place.

Continuity plans are a basic deliverable from the time of initial setup with SMC Squared and are essential for every global office.  All SMC Squared global employees are provided with secure laptops and remote connectivity as part of our continuity plan if the office is not accessible.  This was tested for our clients prior to COVID, so when Prime Minister Modi announced the shutdown with short notice, all of our employees had their laptops with them, including those who may have traveled home to their native places over the weekend. Therefore, despite the continued uncertainty of the pandemic, the change has had a minimal impact on work capacity.