Sourcing & Procurement

Reliable, affordable, accessible supply chains are an essential element in maintaining functional sourcing and procurement operations.  Several factors are involved in establishing and nurturing healthy partnerships with upstream suppliers, with some of these factors becoming increasingly difficult to achieve because of several current challenges.  First, each supplier is associated with a specific set of advantages and limitations so that being able to evaluate inherent risks, limitations and strengths in working with a given supplier provides a huge competitive advantage.  Further, developing flexibility in drawing from among a diverse group of suppliers helps reduce the risk of insufficient supplies.  Analytic tools provide a powerful means to evaluate the cost-benefit involved in maintaining or adjusting supplier relationships in order to continuously fine tune supply quality, availability and cost.  Internal communications between those negotiating contracts with suppliers and those doing the purchasing is another potential weak spot in sourcing and procurement operations.  Finally, identifying and controlling maverick and complex spending outside of the standard purchasing channels continues to present difficulties.