Settling the “SCORe” with “Supply” at the Core: It’s time for Supply Management 2.0 [PRO]
As supply networks are becoming more complex, componentized, outsourced, and global (as well as faster, riskier, and more regulated), the capability of managing supply (i.e., “Supply Management” to manage a network of supply) is promoted from a siloed set of functional process to an integrated strategic one. So, if you want to “orchestrate” it, whether you provide products, services (including information services), or both, you need to collaborate fluidly in a multi-tier and multi-level fashion that orchestrates both the process silos and the information silos. For lack of a better term, think of this as Supply Management 2.0. It basically expands the vision from a traditional procurement-led sourcing process, typically managed via ERP and/or stand-alone procurement applications, to a cross-functional and cross-enterprise “platform” for orchestration of all critical supply resources in the supply network (materials, capacity, logistics, capital, etc.) across the supply tiers. In this Spend Matters PRO research brief, Chief Research Officer Pierre Mitchell argues that it’s time to flip the traditional paradigm of supply management from not just a new faceplate on the traditional purchasing function, but also from the sourcing component of the “sourcing and procurement” moniker that many practitioners use. Having strategic procurement be merely about sourcing as a serial step in an end-to-end lifecycle is a mistake. Not a Spend Matters PRO subscriber yet? Contact us to ask about a 30-day free trial.