How do you manage change and uncertainty in your sourcing environment?

I managed Strategic Sourcing at Paramount Studio when COVID hit, halting productions and shaking our vendorbase. Deluxe, a critical vendor for post-production/localization suddenly went bankrupt. My first step was to assess the impact. Our team dived into rigorous data analysis, supply-demand mapping, market research, and financial modeling to understand the risks to our supply chain and identify alternative supply sources. Finding vendors to match Deluxe's quality and scale was challenging. However, our proactive approach and meticulous planning led us to new partners and backup suppliers. Through swift action and strategic decisions, we mitigated the risks, ensuring Paramount's supply chain remained robust and resilient amidst the crisis.

Brainstorming is a powerful method when utilized well. It must be collaborative, adventurous and open-minded to be effective. It is a great opportunity to incorporate different perspectives to yield a more robust set of solutions and/or impacts (upstream/downstream). Some examples include: internal/external, function/dept, senior/mid/entry level, goals (profit, efficiency, quality, control, etc.).

"Conducting a comprehensive assessment of current sourcing conditions is pivotal in managing change and uncertainty. Utilizing tools like SWOT and PESTLE analysis aids in identifying key factors affecting procurement strategies. This enables proactive decision-making aligned with organizational goals, fostering agility in response to evolving market dynamics.

Don't get tunnel vision on your objectives. Dig in to understand what your needs really are. Do you need an airplane, or do you need lift? Do you need an air conditioner, or do you simply need to manage humidity? This approach unlocks more options to meet your needs and objectives.

Clear definition of objectives and criteria is crucial for effective sourcing strategies. Establishing SMART goals and utilizing decision matrices help align priorities and balance trade-offs across cost, quality, service, innovation, and sustainability. - Setting key performance indicators (KPIs) ensures measurable success, while outlining minimum supplier requirements maintains standards. Communicating these criteria transparently fosters alignment and guides decision-making processes.

Define the problem and you’re at least half the way to solving the problem. Once you’ve identified the business requirements as understood by the business, ask critical questions (5 whys) around getting to the root requirements.

Scenario Planning is a powerful tool in this respect. Brainstorming possible scenarii, then settling on those that are most probable and the "black swans" that would be most disruptive. Once you have a set of plausible scenarii, play out how you would respond, including the responses that would be most beneficial from your suppliers. As you generate these responses, you will probably find that there is commonality across them. Covid is not the first time workers have been told to work off-site, and the disciplines that enabled your organization to survive and even flourish can serve in other situations. It is worth testing these responses, at least with table-top drills, but even better with live drills to understand the challenges.

Adding on to Nicholas’ great comments, it’s critical to assess Supply Chain resiliency and augment it wherever possible. This conflicts with basic principles of strategic sourcing (rationalize supply base, consolidate spend), some third-party supply or value-add needs to have a business continuity plan in case there is a SC disruption. Ideally you’d engage with a primary (set of) partner(s) but continuously develop alternatives.

Exploring diverse options and scenarios is pivotal in crafting resilient sourcing strategies. - Conducting thorough market research, supplier assessments, and scenario planning enables identification and evaluation of potential suppliers. By weighing the benefits and drawbacks of each option and planning for contingencies, organizations can proactively address disruptions or changes. Utilizing these tools fosters adaptability and positions sourcing activities to navigate uncertainties effectively.

Executing sourcing plans efficiently involves implementing decisions and actions while managing supplier relationships and contracts effectively. Tracking and reporting performance using dashboards ensures alignment with goals, while collecting feedback and data enables continuous process improvement. Strategic sourcing is iterative, demanding regular review and adaptation for sustained success.

Execute plan and monitor performance to the plan is arguably the most critical step, this is where Supplier Relationship Management lives, two-way measure performance between the supplier and business, not only against the previously stated business requirements (which should have been you selection criteria) but now in execution those same criteria must be monitored as KPIs against both sides (supplier and your business/stakeholders). So not only the AQSCI (assurance of supply, quality, service, cost, innovation) requirements but against what the business committed to the relationship, i.e., is the business efficiency processing invoices, paying on time, sharing forecasts, etc.

Embracing change and uncertainty has pushed me out of my comfort zone, fostering open and honest communication with our partners. During COVID, the simple act of genuinely checking in with our partners established relationships as more trusting and long-term than merely transactional. Being mindful and grateful for everyone's time and efforts to make things work was crucial. In times of change, harnessing the collective brainpower and ingenuity of our teams becomes our greatest asset. It's about working together to find that light at the end of the tunnel, and ultimately, discovering solace and peace in our new state of business. Change, though daunting, fuels innovation, reminding us that adaptability is key to long-term success.

I would love to see pieces relating to hiring managers ghosting recruiters and candidates who cost the company money by their delays within the recruiting and hiring process