It might be seen as a radical point in some quarters, but the first objective of procurement is to save money.
Cyber-attacks, data protection, Brexit and the increasing trend for outsourcing now means that managing supplier risk in a structured and visible manner is vital for organisations as part of their Procurement and Supply Chain strategy and capability. In a recent survey by Odesma, purely on Brexit, the results revealed that planning and risk management was still being underplayed by many larger organisations, which, in this day and age, is very surprising and somewhat disturbing.
The prevailing approach to tail spend – the bottom 20% of third party spend – is to triage it. That is to put in place a small team acting as a sourcing or help desk to gather three quotes or similar from a bunch of suppliers, and then advise the internal requistioner of the outcome. They then choose to either buy from the cheapest supplier or not.
Whatever your political view Brexit is happening, though much of the detail remains unclear and continues to make for a great deal of media commentary and dialogue. The final outcome is not likely to be known in its entirety until, perhaps, the ‘eleventh hour’.
Most UK/ European based organisations are now aware of their data privacy obligations to the recent GDPR legislation and the amount of time they have to get their own houses in order. This is typically a “Board Level” agenda for many companies - and the heat will...