Vision 2020

Chapter 2: The New Supply Management Emerges

After a big wave of procurement outsourcing, a different animal will be left standing.

Procurement service providers are already hitting their stride, and business models for outsourcing are going to mature rapidly. Instead of spend analysis, sourcing events, and purchase orders, the new supply management professionals will be concerned with more strategic matters. Like driving supply-base innovation to meet end-customers' wants and desires; identifying merger-and-acquisition candidates; managing risk; and optimizing cash flow across global financial supply chains.

To prepare, experts advise you to:

  • Near term, identify work that can be outsourced. Initiate relationships with service providers, and develop ways to measure and manage their performance.
  • Longer term, explore creative ways service-provider relationships can be structured to drive innovation and performance improvements.
  • Eventually, load supply management organizations with global finance, performance management, product/service development, marketing, and PR talent.

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