Blog

Strategic sourcing is an approach that goes far beyond the traditional procurement method of focusing on cost and reducing costs. As the name suggests, it’s strategic in nature. That means formalizing procurement and supply chain management, looking longer-term than the price of a single contract. Strategic sourcing means tracking relations with suppliers and optimizing an organization’s sourcing program through constant market analysis. Strategic sourcing also means being able to measure performance and continuous improvement.

Surveys of CPOs show some predictable trends in the industry. Cost savings and timely delivery consistently top their list of main priorities—as you would expect. At the board level, there are other areas of focus when it comes to procurement, including predictive sourcing and the supply chain. Again, hardly unexpected. However, something exciting is going on as well.

Sourcing professionals have found their role growing in complexity over the decades. From a focus on keeping costs as low as possible while working primarily with local suppliers, sourcing and procurement have expanded tremendously in scope. A modern organization’s procurement department practices strategic sourcing, managing a tangled global supply chain.

The past year has been a rollercoaster. The disruption that the pandemic has brought strategic sourcing has forced organizations to pivot and readjust. Procurement has been under immense pressure to evolve past these supply chain difficulties just for survival.

It doesn’t matter whether a company manufactures cars, frozen meals, or clothing, its supply chain is critical to success. To be profitable, a company must effectively manage its supply chain. Over the years, the supply chain has evolved in many ways. The most recent development—and the one that may just have the most profound impact of all—is the rise of the intelligent digital supply chain and predictive sourcing.

Our team is still basking in the glow of Optimal: The Leadership Summit for Predictive Procurement and wanted to share a guide to the resources of our speakers, customers and thought leaders. We knew beforehand that there was a significant demand for the kind of information we were going to share, but the level of engagement we saw leading up to, during and after the conference was truly notable.

This is the tale of two trends and how they are becoming inseparable: procurement and SaaS (Software as a Service). What is the relationship between a long-established business role and the hottest trend in cloud computing? For a start, both are increasingly seen as a key to a company’s success.

The countdown is on to Optimal 2021. This is the AI conference for procurement teams, where procurement meets AI to drive innovation and digital transformation.  

Sourcing and procurement are critical functions in business. They’ve always been one of the keys to success—simply put, without sourcing, there are no raw materials to make a product. Furthermore, procurement teams typically cost less than one percent of an organization’s total budget, and bring double the savings.