dis·cov·er \dis-kə-vər\ verb: (1): to make known or visible; (2): to obtain sight or knowledge of for
Supplier Discovery
In the relatively new “world” that we call supply management, supplier discovery is one of the most underappreciated activities going. Supplier discovery or identification is that point in the sourcing process where the supply market is researched and a list of potentially qualified suppliers is identified. Now, I have managed enough sourcing projects to clearly see (and therefore, firmly believe) that the inclusion of more qualified suppliers to a bidding process has a direct correlation to better results. I have also worked with enough companies to understand the comfort borne of the status quo and what is perceived to be the path of least risk. These behaviors appear in the strong tendency to simply renew a contract with the incumbent and avoid sourcing altogether (“we’re already doing business with the best supplier” which is one of the dreaded “10 eSourcing Myths” ) or only invite the same suppliers, who participated the last time the category was sourced, to participate again. I would argue that maintaining the status quo may, in fact, be the riskiest thing you can do. Your smart rivals aren’t standing still.
Consider that while globalization, innovation, and competition have helped streamline and improve business performance, they’ve also helped increase business volatility and the complexity of supply management. One very real implication of these trends for sourcing and category teams is that supply markets shift – the most qualified suppliers one year may be laggards in the market just a few years later. In this environment, it becomes more critical than ever to have current knowledge of key supply markets, it becomes more critical than ever to do your diligence and perform sufficient supplier discovery. To top it all off, supplier discovery to identify a list of potentially qualified bidders isn’t even that difficult (again, we’re talking about initial supplier identification; the level of effort to qualify suppliers will depend on the category and a host of other factors) given the current capabilities of the top search engines and the content and search improvements being made to supplier networks (Sidebar: We expect to see several new offerings in this area next year from solution providers that clearly see the value in helping companies improve their supplier discovery results).
So, what’s holding you back? Maintaining the status quo is risky. Invest the time, energy, and resources in supplier discovery – what you find, may just change your world.
Housekeeping – Last Chance for Ardent Research
Several Ardent reports will only be available for another day or two. If you have not downloaded them, this is your last chance.
- Ardent Partners’ Procurement Metrics that Matter in 2019
- The State of ePayables 2019: Driving Value in the Age of Intelligence
- The State of Contingent Workforce Management 2019: The Pursuit of an Agile Workforce
Housekeeping – CPO Honors 2019
Watch this page tomorrow for our announcement of the CPO Honors 2019 Finalists.
As you know, the CPO Honors will be awarded at The Gala Dinner on Day One of The CPO Rising 2019 Summit on October 29th.
Reminder that tickets are now available for the conference OR just the Gala Dinner. All readers are welcome to attend the dinner
RELATED RESEARCH
Announcing the State of Contingent Workforce Management 2020
Six Strategies to Manage Supplier and Third-Party Risk
Now Accepting Nominations for “CPO Honors 2019″
