• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Hot-Button Issues in Sourcing & Procurement

Hot-Button Issues in Sourcing & Procurement

November 11, 2013
SupplyChainBrain

Today's "hot-button" issues include the need to achieve greater flexibility through supplier segmentation, Barger said. Companies are also making a more concerted effort to deploy supplier scorecards and other methods of assessing vendor quality. More than just focusing on cost savings, businesses need to "align performance management with what you value," he said.

Finally, there's a pressing need to engage in supplier risk management, as brand owners increasingly go "asset-light." Barger said companies are experiencing a greater concentration of risk in their supply chains. A recent spate of natural disasters has brought heightened attention to the vulnerability that accompanies many sourcing decisions.

Through the segmentation of suppliers, companies can assess the criticality of each partner, regardless of the level of spend. They can differentiate among transactional, catalog and "bottleneck" suppliers. The last occur when engineering develops an item that is single-sourced. Volumes might be low, but the consequences of an interruption in supply could be devastating. In such cases, Barger said, companies should think about whether it's feasible to develop a second supplier.

Barger sees companies becoming more enlightened about the way in which they deal with suppliers, beyond the issue of cost savings. The most mature organizations are practicing segmentation, which might involve trade-offs among cost efficiency, service and speed. Where they end up placing the emphasis depends on the nature of the markets they are serving. "They need to understand that different platforms sell on different value propositions," he said.

Many businesses are increasing risk by reducing the number of suppliers with which they work. But others are boosting their supplier base. Starbucks, for example, is working with a large number of local coffee-bean growers to ensure product quality and adherence with fair-trade guidelines.

To view the video in its entirety, click here

Keywords: supply chain, supply chain management, inventory management, inventory control, supply chain risk management, sourcing solutions, supplier relationship management, SRM

RELATED CONTENT

RELATED VIDEOS

Logistics Outsourcing Supply Chain Finance & Revenue Management Sourcing/Procurement/SRM Supply Chain Planning & Optimization Supply Chain Visibility Business Strategy Alignment
KEYWORDS Business Strategy Alignment Gartner inventory control Inventory Management Logistics Outsourcing Ray Barger research director SC Finance & Revenue Management SC Planning & Optimization Sourcing Solutions Sourcing/Procurement/SCM SRM Supplier Relationship Management supply chain Supply Chain Management supply chain management: sourcing and procurement solutions Supply Chain Risk Management Supply Chain Visibility
SupplyChainBrain

Russia Expects 2023 Trade Volumes with China to Exceed $200B

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A WOMAN STANDS WITH A TABLET COMPUTER IN A WAREHOUSE, SURROUNDED BY SYMBOLS FOR SHIPPING METHODS

    Five Tactics for Enabling Smart and Sustainable Supply Chains

    Data Management (Big Data/IoT/Blockchain)
  • A MEXICAN FLAG FLIES IN A RISING SUN

    Mexico’s Future as U.S. Go-To Trade Partner Depends on Investment, Infrastructure

    Logistics
  • A WOMAN IN HER LIVING ROOM GESTURES IN DISMAY ON THE PHONE OVER AN OPEN SHIPPING BOX

    Using Artificial Intelligence for Returns Management

    Reverse Logistics
  • A close-up of solar panels can be seen in front of a sunset. Photo: iStock.com/JONGHO SHIN

    Is the Biden Administration Undercutting Its Own Policies on Chinese Solar Imports?

    Sourcing/Procurement/SRM
  • On-Demand-Webinar-Deloitte-Ep1of6-Sep-26.jpg

    Navigating to Net-Zero: Procurement's Role in Supplier Emissions

    Webinars

Digital Edition

Scb august 2023 lg

2023 100 Great Supply Chain Partners

VIEW THE LATEST ISSUE

Case Studies

  • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

  • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

Visit Our Sponsors

Antuit Zebra Anvyl AutoStore
BEUMER Group Blue Ridge Global Brother
CHEP Cleo Coenterprise
Data Capture E2open Enveyo
Eva Air ForwardX Robotics Frayt
GAINSystems Generix Geodis
GEP Global Supply Chain Marketing Summit GreyOrange
Here Holman Logistics Infor
Inmar Kinaxis Lexis Nexis
Locus Robotics Logility LogistiVIEW
Lucas Systems MCA Connect MPO
Old Dominion OneRail Overhaul
PartnerLinQ (Visionet) Port of Virginia Ryder E-commerce by Whiplash
Saddle Creek Logistics SAP Shyft
Sourcemap SPS Commerce Tecsys
TGW Systems Thomson Reuters Veho
Verusen Walmart Workshop
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing