在动荡的供应链市场中实现卓越采购的策略（中英双语）

WHITEPAPER

TurningChaosintoControl:

StrategiesForSourcingExcellenceinaVolatileSupplyChainMarket

Thiswhitepaperexploresthechallengesinthelogisticsprocurementmarketandthetacticsbest-in-classteamsusetoregaincontrolofcapacityandcostwhileensuringprocurementexcellence.

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Contents

3Introduction

5ChallengesinToday’sTurbulentSourcingEnvironment

9SourcingExcellenceDefined:AToolkitforMarketLeadersThroughDynamicMarketSourcing

15UsingTechToStopReactingandTakeBackControl

18Summary

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Introduction

Aspirationsofrestoringsomesemblanceofbusinessstabilityarehighontheagendaforcompaniesthatproduce,moveandsellgoods.However,there’sstillalongroadaheadforprocurementprofessionalsmanagingtheirsupplychains.Whilethegoodnewsisthattheprocurementindustryhasbeenelevatedtoacriticalbusinessfunctionintheseuncertaintimes,thebadnewsisthatafterthreeyearsof‘isolatedincidents,’volatilityisnowthenormandit’slikelyheretostayfortheforeseeablefuture.

Logisticsprocurementisacriticalpartoftheprocure-to-paycycleuponwhichmodernsupplychainsarebuilt,andobstaclesforshippersmovinggoodsworldwideexistedlongbeforetheCOVID-19pandemic.Butfollowingsoaringcustomerdemandthatacceleratedduringthefirstlockdowns,thetransportationofgoods–whetherviaair,ocean,truckingorrail–hasbeenunderconsiderablestrainduetofluctuatingprices,portclosures,talentshortages,highinflation,andcapacityconstraintsamongstotherchallenges.

Withcostsrisingsteadilyandstockpricesunderpressure,budgetmanagementhasbecomeastruggletoordersofamagnitudeneverexperiencedintheindustrybefore–andthat’sdespiteincreasingbudgetsforlogisticsprocurementfunctionsaspartofmanycompanies’effortstokeeptheflowofgoodsmoving.Addinganextralayerofturbulence,themarkethasseenau-turnintheshipper/carrierbusinessdynamic:

Yesterday,shippershadtheupperhand,andthecarrierscompetedforthe

shippers’business.Todayshipperscompeteferociouslytowincarriers’

businessoverothershippers,whichcanallchangeatanymoment.

Today,buzzwordssuchas‘agility,’‘costavoidance,’and‘marketmitigation’aboundinprocurementcircles.Butwithoutthenecessaryinsightanddataathand,shippersandintermediariesareseverelylimitedinhowtheycansuccessfullymovegoodstheyproduceorbuy,letalonedevelopstrategiesthatpreventvalueleakageorenablethemtoactnimblyinthefaceofdisruption.

Muchinnovationinsupplychainplanningandpreparationforfutureriskmitigationisbuiltintocurrentprocessesbyprojectinghistoricaltransactionsintothefutureandthenscanningthehorizonforhintsofwhatmightbeahead.Whilenoonecouldhavepredictedtheflockofblackswaneventsapproachingjustafewshortyearsago,resilienceisnolongeranicetohaveintoday’sdisruptiveworld.Procurementleadersneedtobefluidintheirsourcingprocessesandsupportedbytherighttechnologytotakecontrolofthesechallengeshead-on.

Tocopewiththechaos,themostinnovativesourcingleadersareshiftingfromtraditionalcycle-basedsourcingtodynamicmarketsourcingandleveragingagileprocessesbacked

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byautomationtoelevatetheirteamsoutoftacticalfirefightingandintotheroleofstrategiccategorymanagers.

Thiswhitepaperiswrittenagainstthebackdropofthemostdramaticfreightmarketenvironmenteverexperienced.Itexploresthecomplexitiesengulfingthelogisticsprocurementindustryandthesolutionsthatbest-in-classteamsusetoregaincontrolofthemarket,theirsupplychains,andachieveprocurementexcellence.

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ChallengesinToday’sTurbulentSourcingEnvironment

SoaringCostofCapacity

Tomakeheadwaysinavolatilemarket,securingandmaintainingcapacityisking–butlonggonearethedayswhenitwasabundantandpriceswerelow.Despitesomepromisingsignsthatthemarketiscalming,atthetimeofwriting(May2022),globalcontainerandairfreightratesremainunderhistoricpressure1andoceanshippingratesareexpectedtostayelevatedanddynamicwellinto20222.

Figure1:BalticExchangeAirFreightIndex

Bycomparison,justthreeshortyearsago,movingproductsthroughoneoftheworld’slargesttradelines–ChinatotheUS–wascostingUSD$1,500fora40-footcontainer(FEU).WhenCOVID-19emerged,theindustrywasrockedaspricesshotupto

$4,000percontainer.Bylate2020,capacitydropped,panichitand–insomecases–companies’budgetsforoceanfreightdoubledovernightaspartofdesperateattemptstoalleviatethepressure.Today,thosesametradelineshaverisenabovethe$10,000markperFEUtomorethan$15,000atthepeakofthecontainerproblem,markingatenfoldincreaseonwhatitoncecosttomoveanoceanfreightcontainerfromChinatotheUS.

1AirfreightRates-BalticExchangeAirfreightIndex,2022,/data-hub/

airfreight-rates-tac-index/(accessed2May2022)

2Bloomberg,‘ShippingCompaniesHada$150BillionYear.EconomistsWarnThey’reAlsoStokingInflation’

(2022)/news/features/2022-01-18/supply-chain-crisis-helped-shipping-

companies-reap-150-billion-in-2021(accessed2May2022).

Figure1:BalticExchangeAirFreightIndex.Changesinairfreightrates(2015-2022)Frankfurt-N.America,

HongKong-Europe,HongKong-N.America.ChartcourtesyofAirCargoNews/

data-hub/airfreight-rates-tac-index/

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Globalmanufacturingchangesareoccurringrapidly;whatusedtobeone-offprofitmarginchallengesnowhappenwithalarmingfrequency.Asaresult,companiesregularlyhavetoreadjusttheirsupplychainstogettheproductstheyneed,andinmanycases–simplygettheirproductstomove.Atthetimeofwriting,aroundone-fifthofcontainershipscannotleaveportsworldwide.China–hometotheworld’slargestcontainerportinShanghai–isresponsibleforclosetoone-third3ofthebacklogfollowingmonthsoflockdownsandrelentlesscontainershiptrafficjams.

Inparticular,theoceanandairfreightmarketisseeinghugeincreasesindemandthatonlycontinuetorise.Priceshavesoaredasshippingallianceshaveformed,reducingcapacityevenfurther,andleavingshipperswithlittlechoicebuttopayinflatedlogisticscosts,missseasonaldemandorloseoutonbusiness.

Butwithconsiderablebarrierstoentryfornewoceanandairfreightcompanies,littleadditionalcapacityisbeingcreatedtonegatethemonopolizationofthemarketthat’simpactingsomany.Compoundingtheissueisthatthelargestshippershavesomuchclouttheycanchangethemarketandbenefitfromthebedlambyseizingthecapacity.Andwhentheycan’tgetoceancapacity,theysimplyturntoairshipments.

ALosingBattleWithBudgets

PreviouslytheremayhavebeenawillingnessonthepartofCFOstoforgiverisingcostsaslongasrevenueswereincreasing.Buttoday,withinflationontherise,revenuescomingdown,andstockpricesunderhistoricalpressure,procurementteams’challengesarebeingworsenedinnosmallpartbynegativemacro-economicfactors.

CostsavingswereoncethekeyperformanceindicatorforCPOs,butprocurementleadersaremorefrequentlyplayingtheroleofbystanderswhenitcomestodrivingbaselinecostsforcompanies.Withbudgetsregularlysetasfarbackas12monthsandwithlittlechoicenowbuttopay2-3timeswhatwasexpectedtomovefewercommoditiesthaninitiallyplanned,categorymanagersareinatoughpositionastheyareforcedtomeetcommitmentsaroundspendandsavingsfortheyearahead.Asaresultofdramaticchangestohowthelogisticsworldoperates,manyhaveshiftedfocustocostavoidancetacticstoquantifythevalueoftheirsourcingactivities.

Alongwiththepriceandinflationchallengesfacingthecommoditiesmarket,categorymanagersaretaskedwithsellingthestoryinternallytostakeholdersthatlogisticspricingisnowfollowingcommoditystyletrends,butprovidersarenotequalandinterchangeable.Asaresult,buyersandcategorymanagersneedtolearnfromtheirpartnersindirectpurchasingwhoareusedtomanagingfluctuatingprices,butmanageitatevenahigherlevelduetoeachvendor’suniqueservicelevelsandcapabilities.

Butwhilemanyteamshaveseentheirbudgetsincrease,largerspendcan’taddressthemyriadofsupplychainchallengesthataren’tgoingawaysoon,particularlywhendealingwithfinitelevelsofcapacitythatsuppliershavetomovefreight.

3Winward,‘ChinesePortCongestionStallsContainerVesselsWorldwide’,19April,2022https://windward.

ai/blog/chinese-port-congestion-stalls-container-vessels-worldwide/(AccessedMay12,2022)

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ShiftFromAnnualRFPtoMoreFrequentCycles

In2020westartedtoseeadramaticchangeinavailableairfreightcapacity,coupledwithcontractedratespreviouslynegotiatedwithairlinesthroughannualRFPsbeingdiscarded.Thereductionofflightconnectionsbeyondmajorhubsaggravatedtheissue,whichincreasedtheneedtosourcegroundoroceantransportationatexpeditedpricing.

Historicpracticeinlogisticssourcingrecommendsgoingtomarketonanannualbasis.Butfacingavolatileandchangingmarketwithlittlemeansofpredictingwhereturbulencewillstrikenext,manyshipperswerelefttorelyonspotbiddingwithcarrierstomeetdemand.

Thesavviestofthesemovedintodynamicmini-bidmonthly/quarterlycycleswithadjustmentsmadethroughouttheyeartoaccommodateshiftsincarriercapacityormaterialscarcity.Thismovehasbeencalleda‘sourcingrefresh,’allowingforafairandtransparentprocesstorunyoureventsatthecycleneededtolockinrateandcapacity.ThisprocesshasimprovedCFOreportingfromannualbasedonoldratestomorecurrentratesateachrefresh.

TheDilemmaofSpotBidding

Reactivespotbiddinghaslongbeenpartoffreightprocurement’smix,evenin

“normal”times,asunpredictablesupplychaindisruptionsordemandchanges

inevitablyaroseandshippersfoundthemselvesspotbiddingmoreroutinelythan

everbefore.Butafundamentalproblemwithspotbiddingisthatittendstobea

veryinefficientandexpensiveexercisethatemphasizesaquickawarddecisionto

reducerisktosupplyflowandthebusiness.

It’salsonotuncommonthatthesebidsarenegotiatedofflineoutsideofaformal

e-sourcingprocessandthatevenwhendataiscollected,it’spurelyrate-focused.

Thisbecomestime-consumingforthebuyersatscale,increasesroguespend

withnon-approvedsuppliers,andit’snotidealformanagingandtrackingspend.

Anotherreasonteamshistoricallydidnotconductsourcingeventswithgreater

frequencyandwithsmaller,morefocusedspend,isbecauseofaconcernforhow

thiswouldimpactthebuyingteam’sworkloadandpriorities–nottomentionthe

suppliersandcarriersseekinganefficientwaytobidonthebusiness:leveraging

volumetonegotiateforthebestdealhasbeenthestatusquo.

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LimitationsofLegacyTechnologies

Muchlipservicehasbeenpaidtotheprocurementindustry’sdigitaltransformation;accordingtoArdentPartners’research,38%ofChiefProcurementOfficerswillprioritizetheseinitiativesoverallotherprogramsin20224.

Butforthemostpart,procurementprocessesstilltendtobehandledmanuallybyteamsrelyingonlegacytechnologiesthatlimittheirabilitytobeasreactiveasthemarketdemandsbuyerstobe.Thisfrequentlyoccursdespitesoftwarethatcanenablemoreefficientprocurementhavingexistedfordecades–andthetoolsgetmoreandmorerefinedeachyear.

Onlyahandfuloftechnologiescanscaletohandlelargelogisticsnetworksandsourcing.TheoldfaithfultouseisMicrosoftExcel.Althoughagreatandmuchreliedontechnology,itmissesoutonpricecompression,capacity,andvolumefunctionalitiesotherproductsonthemarkethave.Thereisamassiveadministrativeburdenthatalsocomeswithsendingout,collecting,cleansing,andcomparingacrossdozensorhundredsofbidders.TheotherbigchallengewithExcelisitrequiresanMS-Solverblackbelttorunscenarioexamplestofindthebestoptions.

Formanycompanies,abasiceRFPore-auctionproductwillbetheirfirstportofcall,utilizedtodrivecompetitivebiddingfocusedonthesimplerspendswhere‘lowestprice’isthedominantorsoledecisioncriteriaamongqualifiedsuppliers.Butmostbasice-sourcingplatformscannotevenscaletohandlethenumberofcolumns(laneattributesgreaterthan50)orrows(lanesgreaterthan5,000)oralargenumberofcarriers(suppliersgreaterthan100)tosourcelogisticsinasingleevent.

Currently,solutionswithcombinatorialoptimizationhavebeentheonlyadvanced

e-sourcingtechnologythatcansupportthecomplexityofthelogisticsmarket.Butwithsourcingleaderslaser-focusedontacticalfirefighting,theyhavelittletimetofocusonstrategictasks–andthatincludestakingthetimetoresearch,buy,andimplementasoftwaretoolthatwillsavethemmoney,time,andthatcankeepupwithtoday’smarketdynamics.

Thesubsequentsectionoutlinessomeoftheprocessesandstrategiesthatbest-in-classlogisticsprocurementteamshaveadoptedtoout-performtheirpeersandcompeteforprice,capacityandotherbenefits.

4ArdentPartnersCPORising2022:TheDataRevolution(2022)/resources/cpo-

rising-2022-the-data-revolution

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SourcingExcellenceDefined:

AToolkitforMarketLeaders

throughDynamicMarketSourcing

Asnotedearlier,thelogisticsmarkethasbeenturnedupsidedown,andshippers’abilitytorespondrapidly-butappropriately-hasbeenkeytomanycompanies’survival.Forshipperstogoastepfurtherandthrive,theyneedtobepreparedinthesensethatifthemarketchangesfast,theyhaveenoughpreparationsinplacetorespondtoitandlimitrisktotheirbusiness.

Takinglessonsfromhistory,bythetimetheTitanichittheiceberg,itwastoolatetostartthinkingaboutthenumberoflifeboatsrequiredtogeteveryoneonboardofftheshipsafely.Thedisastrousendtotheshipwasaculminationofeventsresultingfrompoorscenarioplanning,inadequatedecisionmaking,andnothavingtherightstrategiestospotrisksearly.

EvolveToMeettheMarket

Businessestodaymusttakerapidactionbackedbydata-driveninsightstofueltheiroperationsinthefaceofvariabledemandandsupplychainshocks,ordealwiththepotentialcatastrophe.

Unfortunately,mostsourcingfunctionsaresofocusedonreactionarymeasuresthatoneofthemosteffectivewaystosavemoneyandincreasecapacitytypicallypassesthemby.Butleadersinthespaceareactivelyseekingouttechnologicalsolutionsthatenablethemtoshiftawayfromtraditionalcycle-basedsourcingtodynamicmarketsourcingtoaddresstheircurrentneedsandachievebusinessgoalsinthisnewnormal.

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Thisshiftallowsfortruetransformationtooccurbyreactingfast,learningfromearlierefforts,andexceedingbusinessgoals:

EvolvingSourcingtoMeettheMarketDynamics

TraditionalCycleSourcingExample:StableMarket,Pre-Covid19

2Year

8-12week

turnaround

DynamicMarketSourcingExample:VolatileMarket,NewNormal

2Year

1week

turnaround

4-6week

turnaround

Quarterly/MonthlyEventsranwithAutomatedSourcingPlatform

AnnualEventsranwithanOptimizerPlatform

SpotBuyEventsranwithLegacysoftware

TRADITIONALCYCLESOURCINGvs.DYNAMICMARKETSOURCING

•Annualeventsincludeallknownlanesandpricesfixedfor1-2years.

•Eventset-uprequires1-2monthsandanadditionalmonthtodeploynewratesacrosssystems.

•Annualandspotbuysarenotalwaysinsyncwithannualbuyingbusinessrulesbutaretypicallynewrequirements.

•Oldertechnologiesmakeithardertoadheretocommonrateandawardstructuresacrosstheseeventtypes.

•Speedtodeployeventsandresultsarelesscriticalbecausetheyarefixedforlongperiods,andcarriersworkwithextensions.

•Pricingbecomesrapidlystale,androutingguideserodethroughtheyear

•Longcycletimepreventsmorerapidactions.

•Annualeventscanhelpalignbusinessrequirementsandnetworkchanges.

•Priceand/orcapacityarehighlyvolatile

•Annualandquarterly/monthlytendersnowneedtobenormalizedtohelpmanageratecardsandroutingguides.

•Rapidsourcingallowsforquickertestingofnewsuppliers,andcontinuousrightsizingtostaywithmarketconditionsorseasonality.

•Improvescommunicationeffectivenesswithcarriersbyallowingnormalizedprocessestohandleandvalidateratenegotiations.

•Agileprocessesallowforbetterevent-to-eventstandardizationandtimetomarketwithrapidcycles.

•Constantabilitytoevaluatethemarket.

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3)ResourcefulSourcing:

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Acrosstheboard,threedistinctivestrategieshaveemergedtosourcelogisticsduringthesevolatiletimes:

WhichoftheseSourcingStrategiesDescribeYourTeamToday?

1)ReactiveSourcing:

Thesourcingteamrespondstocurrentvolatileconditionsusingtraditionalprocessesfromstable(Pre-COVID)markets.

Annualeventsleveragetechnology,butoff-cycleeventstomanagenewlanesandtorouteguidefailuresaretypicallymanualwithExcelandEmails.

Sourcingeventsarehigheffortandhavelimitedrepeatability.

Thisprocesstypicallylagsthesourcingcycleneededfortoday’smarket.Usually,thisapproachfocusesonlowercapacityrisksathighercosts.

2)ResponsiveSourcing:

Theteamsourceshigh-impactlanesandfillsrequiredgaps,adjustingtothenew

norm.

Annualandoff-cycleeventsleveragetechnologywhenpossible.

Sourcingismediumtohigheffortandeventsaresomewhatrepeatable.

Theprocessistacticalandfollowsatraditionalsourcingmodel,butitisslowanddifficulttomaintainatthemarket’s

pace.

Theteamswitchedfromtraditionaltodynamicmarketsourcingtoadjusttothevolatileconditions.

Annualandoff-cycleeventsareallpartofasingle-threadedcollaborativesourcing

process.

Sourcingeventsareloweffort,highlyrepeatable,standardized,andnormalized.

Therefreshcyclefrequencyisadjustedtostaycurrentwithmarketchangesorexpiringrates,allowingforcompetitivemarketratesandrobustcapacityoptions.

Thisapproachprovidesinformationtomanageriskbetter.

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Laggard

Leader

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Thekeydifferentiationbetweentheolderandnewertechnologiesabove

istheabilitytotakecontrolofthemarket,andusesourcinginformation

tomanagecommitmenttobudgetandservicebetter.

Thecompaniesfollowingdynamicmarketsourcingareoutperformingothershipperstogetbetterratesandcapacitywithcarriers.Forthosestrivingfortrueprocurementexcellence,somedistinctivefeaturesappearlessintheprocessesofthe‘laggards’–whofocusonmorereactivesourcing–whencomparedwiththe‘leaders’whohaveadoptedmoreresourcefulsourcingstrategies.

LogisticsSourcingLeadersDeploythe3R’s-RoadtoProcurementExcellence

Industryleadershaverespondedtothevolatilelogisticsindustrybyshiftingtodynamicmarket-basedsourcing.

AgilityResilienceFluidityRisk

REACTIVE

RESPONSIVE

RESOURCEFUL

Actionorevents

thatchange

behaviorfrom

2-24months

Theabilityto

manageaplanned

orunplanned

transition

Actionorevents

thatchange

behaviorfrom1

week-2months

Insighttomanage

bothratesand

capacityforthe

business

Agilityisnowtheminimumlevelofsourcingadjustmentrequiredinthemarket.Whencombinedwithresilienceandfluiditytohandlevolatility,teamsaremorelikelytomanageriskeffectivelyandachievetheexcellencethey’restrivingfor.

Let’slookatthethemesinmoredetail:

1.TheAgilitytoRespondQuicklyandEasily

“Atransportationmarketdisruptionoccurs,andmyteamcanadjusttheirsourcingprocess”

Withoutadoubt,businessesneedtobemoreagileandadaptableinordertothrive.Butyesterday’sagileisnotthesameastoday’sagile;shipperscanbeagileandworkfastbutisthatenoughtohandlethechallengesinavolatilemarketplace?

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Leadingprocurementteamscansenseandrespondproactivelytoany

disruptionbecausetheyhaveacompleteviewoftheirsupplychain.Theycaneasilyoverseetheirorganization’sstrategyrightdowntotheexecutionoftheirsourcingprocesseswithfewerhumanresourcesallthankstotheirabilitytorunscenariosusingintelligenttechnology.Asaresult,thesecompaniesarefarbetterpositionedtorespondquicklyandeasilytowhateverishappeninginthesupplychain.

2.ResiliencetoRecoverandToughnesstoHandleChallenges

“Mysourcingteamcanrespondtoanindustryemergencyorshort-termrequirementwithskillstosourcefasterthanothershippers.”

Businesseswithsupplychainsneedtoensureresiliencyistakenfromboardroombuzzwordtooperationalreality.Whileyoumightneverknowwhat’sgoingtobeonthehorizon,it’svitaltobepreparedtooperateasabusinessthroughchallengingevents.Intoday’smarket,weoftenonlythinkaboutrisingcosts,butsourcingteamsneedtobeabletoreactjustasfastwhencostsgodownorwhennetworksarelargelydisrupted.

Leadersensuretheyhaveenoughresilienceforbusinesscontinuitybydigitizingtheirsourcingoperations.Havingaclearpictureoftheirecosystemsandtherightsourcingsoftwareinplaceallowsthemnottobeoverlydependentontoofewsupplierswhenchallengesarise.

3.FlexibilityGiventheFluidityoftheSituation

“Myprocessesareflexibleenoughtosupportnormalanddisruptivesourcingcriteria.Icaneasilysourcewithinandacrossmycarriers,aswellasnewsuppliers.”

Whensupplychainsgetdisrupted,sourcingteamsmayneedtocollectnewbidsquicklytokeepthingsrunning.Inordertostaycompetitive,theyneedtolookatmini-bidstakingplacead-hoc,bi-monthly,orevenquarterly-butasaddressedearlier,spotbuyscomewiththeirownsetofchallenges.

Leadersarerunningtheseeventswithtechnology,whilethelaggardsaredoingitmanuallywithemailsandspreadsheets.Withtherightoptimization-backede-sourcingtoolintow,leadingsourcingteamscangainacompetitiveadvantage,particularlyinlarge-scaleeventsthatrequiregreaterflexibilityinfeedbackandscenariosatdifferentiterationsofthenegotiationprocess.

Thebottomlineisthatwithannualnegotiatedratesnolongerbeinghonored,andunexpecteddisruptionsbecomingthenorm,innovativesourcingleadersareturningtosoftwaresolutionsthatenablethemtoeasilydevelopastandardized,repeatablesourcingprocesswithshorterbidcyclesthattakedays–notmonths–tocomplete.

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4.AnUnderstandingofExposuretoRisk&MitigatingItWherePossible

“Myteamcanunderstandoptionsandtheirassociatedrisks.Italsoallowsmetomakedata-drivendecisionstomanagemyrisk.”

Withtransportcostsshootingupanddownwithhighvolatility,shippersmustbeabletoavoidsurprisesandaccuratelyexplainpotentialriskstoC-Suite.Theleadersaretheonesthathavetherighttechnologyinplacethatallowsthemtolookatthetrendssothattheycanfigureoutwheretheriskisbeforeithappens,andpivotaccordingly.TheseCPOsneedtoknowaheadoftimewheretherisksare,andtheytendtobeveryproactiveon‘whatif’scenariossuchas:

WhatifIlosecapacityduetoanotherSuezCanalincidentortheRussia/Ukrainewar?Whatifsomeofmyvendorsareignoringmessages,raisingtheratesorcuttingcapacity?

There’stoomuchatstaketohaveasinglesourcingstrategyforcriticalsupplies.Withtherighttechnologyinplace,leadingsourcingteamsareeasilyawardingmultiplesupplierswhilealsolookingbeyondlowestpricebidstocollectandanalyzeadditionalconsiderationssuchasreliability,sustainabilityanddeliverytime.

Keelvar’sRecommendation

Don’tAbandonYourAnnualRFP:Instead,useitasthetimetoadjustyourbusinessterms,changestrategiesormakebigshiftsinyourbusiness.Monthlyandquarterlystrategyupdatesmightallowyoutoaccountformarkettrends,dealwithcapacityissuesandensureyourbusinessremainsoperational.Lookingatyouroverallprocessasacontinuousrefreshprocessenablesyoutobetteractivelymanageriskalongwithyoursupplierrelationships.

Whenitcomestomanagingspend,stayinthedriver’sseatbyusingtheannualRFPasapotentialresetpointforyoursupplychain:useittochangepaymenttermsandintroducenewlanesorproductstoyoursuppliernetwork.Or,simplyuseitasanotheropportunityforsmall,incrementalchangestoyourbusinessaswithanyquarterlyupdate.Itcanbeagoodopportunitytocollaboratewithcarriersandreduceriskforeveryone.

Goingforward,expecttoseebusinessleadershipdrive

resourcingexcellencewithratesandcapacity.

Thenextsectioncoverssomebenefitsofusingsourcingtechnologyasmarketcomplexityincreases.

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UseTechToStopReactingand

TakeBackControl

Theneedforspeedinsourcinghasneverbeengreater.Businessesmustrelyonrapid,data-driveninsightstofueltheiroperationsinthefaceofvariabledemandandshocksripplingthroughoutthesupplychain.Firefightingissuesthatemergealmostdailyisleavingteamsdrowninginworkandwithlittletimeforstrategictasks–particularlyiftheyarestillheavilyrelyingonExcelspreadsheetsandofflinepractices.Usingarchaic,old-schooltechnologytomanagelargeRFPprojectscantakehundredsofhoursofproductivityfromyourteamthatwouldbemuchbetterspentelsewhe