No, we’re not talking about some spooky Halloween-centric story. Nor are we bringing up something really freaky like the decline of procurement’s influence, charter and budget (scary enough – and somewhat true – in far too many organizations already). Rather, we suggest that procurement should focus on selling fear!
Fear sells. Especially when it comes to supplier (risk/compliance) management. Supplier management activities will ramp up based on a combination of global supply chain risks (e.g., disease, war, sovereign debt, natural disasters) and regional/local compliance regimes that will continue to increase.
These risk/compliance requirements call for a new architecture in both supply risk management and in supplier compliance management. The former is a mash up of multi-tier supply network modeling, materials tracking and classic risk modeling and mitigation. The latter requires role-based activities driven by the thresholds tied to various regulatory controls.
Other types of non-compliance risk “sell” as well from a fear standpoint. For example, in the area of invoice discounting, supply chain finance and trade financing, generally, are financing partners working with partners following the right steps and frameworks (to avoid unnecessary tax implications).
Above all, be scared. But scare the business and use fear to your advantage to garner investment and support.
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