SI doesn’t do many top X lists, because not many are useful — but every now and again it’s informative to look at what is being read and ask why. In yesterday’s post, we summarized the top 11 posts from the first half of 2016. In today’s post, we discuss potential reasons as to why the indicated posts were the top posts from the first half of 2016.
If we analyze the top x posts, we see the following overlapping subjects, in alphabetical order:
- Procurement Strategy
- Supply Risk
- Tail Spend
All of these revolve around platform, strategy, risk, and spend with (strategic) suppliers. Basically, your peers, enlightened as they are, are concerned with making the right decisions when it comes to identifying products and suppliers on which to allocate spend. This right decision revolves around a combination of cost avoidance, risk avoidance, and waste avoidance. The wrong decision can cost too much, come with too much (potentially devastating) risk, and cost the organization a lot of resources and effort over the long run to manage and control. All of this wastes time, money, and effort.
A Procurement organization with the desire to (someday) be best in class realizes that the only way it can do so when it is constantly under-resourced and under-funded is to be as efficient and effective as possible. It realizes that it has to build and maintain a sustainable value engine and focus on what matters — reliable supply, quality products and services, cost control (not savings), and value generation — and that this requires the right talent, technology and transformation from a laser focus on savings to a broad value focus on the organizational goals. A focus that understands and manages risk; that forms, adopts, and implements strategy; that gets all spend under management (even if that management is simply 3-bids and a buy or automated auctions for tail-spend so that the organization never spends more than market average and never gets less than market average quality); and that realizes that platforms provide power, but not solutions. Human intelligence is still required.
In other words, what SI has been focussed on since day one.
And that’s probably why these posts rounded out the top 20.
- 30K a Day for Advice, and You Haven’t Even Seen a Solution!?!
- AI Will not Save Procurement … It Will Only Hasten its Demise
- Your Procurement Sucks … and Here are 3 Likely Reasons Why.
- What’s the Real Reason for the Driver Shortage?
- First Clue that the New Public Procurement Policy is Going to Cost Everyone Money
- Do You Have Your 2016 Supply Risk Management Game Plan?
- How to Save a Whopping £500 on 1.0M of Spend!
- Why Good Procurement Goes Bad. Part I.
- You Might Be Getting the Basics Right, but That’s Not Enough