Spend Management: Managing In Volatile Times

Many of you know me as a blogger. But my op/ed roots go back to when I would frequently author columns for IT trade rags such as Internet Week and Information Week in the late nineties. I'm still asked on occasion to contribute my thoughts to various publications. And when I have the time, I'm happy to do it. A couple months back, I submitted a piece for the Winter edition of CPO Agenda that discussed tactics for managing spend in volatile times. It's been available online for sometime, and if you're interested in the topic, check it out.

In the piece, I begin to introduce some sourcing tactics in more detail that I've previewed on Spend Matters. For example, I note that "adopting a risk management perspective to procurement and global supply chains does not only mean embracing a philosophy simply of controlling any potential downside. It also entails better quantification and understanding of opportunities. Consider raw "commodity inputs" such as copper, nickel or even skilled offshore IT labour. Analysing the willingness of a procurement organisation to float the price of underlying commodity elements through the duration of a contract by not locking into fixed pricing with its direct providers -- or hedging pricing on a market-traded index -- is obviously a first-level priority. But if an organisation is more advanced, it might consider a broader risk management strategy that looks at price volatility, and appropriate strategies, throughout an extended supply chain."

If you have a minute, I'd love to hear your thoughts and comments on what I have to say in the column (I gave it far more time and thought than a typical blog post).

Jason Busch

Discuss this:

Your email address will not be published. Required fields are marked *