The discipline around strategic sourcing and broader procurement operations improvement has been around for over two decades and is not a new priority for most companies. While the environment in which it operates has changed over time with the US shifting from a largely manufacturing to a service economy, a trend toward global sourcing and a general increase in buyer and seller sophistication, the sourcing and procurement function appears to have adapted pretty well to these changes and in so doing evolved away from being purely transaction-oriented toward becoming a more value-added resource within the company. Even so, there is a realization among industry participants that the profession hasn't progressed as far as it thinks and many companies still struggle with basic fundamentals. Thus, while things may look okay on the surface, a deeper inspection reveals a great deal of room for improvement. This is largely because while companies were quick to jump on the bandwagon and adopt every new procurement trend, they did not adopt them particularly well resulting in quick, but unsustainable gains.
This environment is driving demand for consulting services in four areas as outlined in the report Sourcing & Procurement Consulting: Procurement Operations, written with my colleague, Nathan Simon.
