Let’s talk about Sourcing being stuck. Being stuck in the mid 1990s. Being stuck in the same 6, 7, or 8 step sourcing process that was designed before there were concepts like category management or supplier relationship management. It was designed before technologies like Ariba even existed. The Sourcing process was designed when Full House, 90210, and Clueless were the rage.
Now, I loved the 1990s – I got jiggy with it for sure. But, it is 2017! It is time to fast forward, literally. Many other areas in business have been focused on speed to value where we have been focusing on periphery, needed, improvements like P2P solutions, CLM, Spend Analysis, outsourcing, cost savings through FTE reductions in source through pay. We have also done brilliant things like integrated supplier management and proving that we can add more value than cost savings.
However, there are few that are focusing on the core, sourcing process. This is our achilles heal. How often do you experience this:
- Hey Procurement, we have already negotiated this agreement, but can you sign the contract?
- Sure Procurement, you can help us, but you only have 3 days to get this agreement signed?
- We are trying to get this new product to market ASAP and we do not have time to take it to bid.
- Ummm…yeah…your goal is $25M more than last year.
- Or – my favorite – How long will this RFP take? Procurement professional – well, our average SLA is anything between 4 to 6 months.