Thought would share some insights based on a recent conversation I had with a leading Analyst:
1. Agility is key to thriving in these new conditions, in this 'New Normal'. It not only means exploring new resource models but also access to best practices, intelligence and embedded capabilities to capitalize on changing market dynamics faster. It is also about agililty to shape demand. How can I utilize a network that brings buyers, suppliers and trading partners together to shape demand the fastest way?
2. Profitability still a major focus. Executives are looking for not only ways to access new buyers and increase revenue but are also focused on taking cost out of the business. This goes beyond simple efficiencies that can be gained by procurement automation (which you absolutely need to do). How can I expand to new business opportunities? How can I grow the share of my customer’s wallet? How can I lower the costs to do both?
3. Risk Management still a top boardroom agenda item. Despite what some economic pundits say, the truth is we are not out of the woods just yet. Even if the economy is improving, supply risk is real and is here for a while. Companies will continue to face more risk and challenges than ever before in this new normal. The question is as a buyer, how can you manage your supply risk more flexibly? Yes, you absolutely need to include risk management in your sourcing strategy. As a supplier, despite your current risk profile/rating, how can you demonstrate your viability and continue to retain and bring in new customers in this environment?
Check out more supply risk related resources here.
4. Cash is (still) king.It is not only having full visibility into your cash flow but also making sure you have a solid working capital management strategy in place to capture your full discount potential and unlocking working capital that might be tied up today to use in strategic capital investments.