The Decision Barometer Continues to Move
How often has it occurred that companies have entered a “gray” area in making a sourcing decision or selection? Were the criteria clearly stated? Where did the final sourcing selection or decision get resolved?
In the procurement profession, these challenges surface or are encountered frequently. The performance “measurable” has been realigned and in some cases changed to reflect the new needs of the company. For example, cost may not be the leading indicator or goal criteria that defines a successful outcome, which may impact the strategic decision and the culture of the organization. Value, however it is defined, becomes the platform.
The sourcing processes exercised to identify the potential opportunities are straight forward, and the analyses used to establish the basis for the negotiations are clear. But it doesn’t end there.
Innovation and relationship building (internal and external) are required drivers in strategic sourcing decision making, which is finding its way into the senior executive (C-suite) offices of the company. This is the desired outcome and it increases the scope of visibility on the corporate radar.
Leading this approach requires a comprehensive level of experiences and vision. The aligning of procurement and other stakeholders is critical to qualify and validate the culture and values of the company.