Improving on Strategic Sourcing
These days, sourcing has become a common discipline in supply chain and transportation management. There is an organizational expectation that transportation modes will be sourced and cost will be taken out of the network with some regularity. However, meeting these expectations while maintaining service year-over-year has become more challenging. To get more out of the market, we need to change the approach, as it is no longer enough to simply conduct a “bid” for transportation capacity. Sourcing professionals have to continuously push the limits of data, technology and the decision-making process to find and deliver value.
In my view, there are five important characteristics to improve upon in order to continuously drive positive sourcing outcomes: scale, transparency, flexibility, accuracy and speed (time to value). In today’s environment, it is not enough to embrace two or three of these characteristics. These qualities are interdependent and you need them all to get the best out of the market and collaborate effectively with your supply chain partners and internal stakeholders. Granted, leveraging these attributes requires organizational alignment, data, technology and efficient decision processes, but when they are all present, we can capitalize on sourcing potential.