Lessons Learnt from the 2012 Real World Sourcing Series

Authored by Sarah Clarke

When I reflect on the 2012 Real World Sourcing Series,  I think about some of the takeaways from the sessions.  Here are a few of my highlights from the briefings:

• Sourcing success starts with spend analysis. Guy Allen started the briefing with one simple direction - Procurement Professionals everywhere - Know Your Numbers! Missing data scattered throughout incapable systems is the most common excuse for a lack of spend analytics. The briefing demonstrated how the ROI and visibility offered by spend analysis acts as a launch pad for ongoing sourcing success, contract compliance and cost savings.
• Launching a new category takes effort and strategy.  New categories allow procurement to make their mark by uncovering long-hidden savings and inefficiencies, but it’s a massive undertaking. How many of us try to effect change in our organisations without considering a structured change management approach?
• Measure procurement’s performance beyond savings. Savings will always be an indicator of success, but consider these questions: How can we ensure that procurement metrics reflect the organisation growth goals? Is the ultimate measure of procurement’s success effective supplier performance?
• We must start to narrow how we assess procurement as a business function. There is no right or wrong answer for how the industry evaluates procurement’s overall value. However, much like measuring each procurement department’s worth, we cannot base this assessment on savings overall. It’s a combination of analyst reports, self assessments and contributions from business leaders.

I'm looking forward to the 6 subjects we've chosen for the 2013 Real World Sourcing Series.

If you attended any of the 2012 briefings, what were your highlights?