HBR High-Performance Sourcing and Procurement, Driving Value Through Collaboration
- Today’s strategic sourcing function has an extraordinarily broad scope, with an unparalleled perspective on both the requirements of the business and on the supplier landscape, including suppliers’ capabilities and competitive motivations. That perspective allows sourcing teams to stimulate healthy and constructive competition, while accounting fully for business stakeholders’ needs and objectives.
- Enterprises that focus on strategic sourcing can generate substantial economic value not just by eliminating waste, reducing costs, and improving administrative efficiency, but also by building stronger relationships that can make them more competitive while improving margins and simultaneously increasing the speed of procurement.
- Leading-edge technology platforms can bring together previously siloed personnel and processes, remove resource-intensive and error-prone manual interventions, provide end-to-end visibility into sourcing projects and performance, facilitate an enterprise-wide sourcing methodology, and allow both internal and external stakeholders to work together effectively in real time.
No enterprise is an island; each one exists as part of an expansive ecosystem of customers, competitors, and collaborators. At their core, enterprises must generate economic value by identifying and addressing the customer needs more efficiently and effectively than their customers can themselves. To thrive, they must also address those needs better than their competitors. And to succeed in serving customers, besting the competition, and achieving growth and profitability objectives, companies ultimately must rely on a group of critical collaborators: their suppliers and vendors.
In an era of rising customer expectations, intensifying competition, increasing globalization, and rapidly changing business conditions, high-performance sourcing, procurement, and supply chain management have become crucial to enterprise success.