Congratulations! It’s been three years since you decided to outsource accounts payable. Or, accounts receivable, or customer care, or payroll, or HR, or procurement, or any one of a dozen business process functions typically outsourced, in part or in full. You’ve finally stabilised operations, established consistent market standard processes, addressed the fears from the field, started realising those projected savings, and convinced IT that it is possible to improve response time without creating a horrific security breach.
"There has got to be a better way!" That’s the common lament from all aspects of the healthcare industry from providers, payers, and patients alike when talking about the relationship between those three parties. It not unusual to hear complaints like, “misaligned financial incentives”, the “tyranny of the 15-minute visit”, or it’s an “unsustainable system”.
As the drone flew over the factory in North Carolina and captured pictures and videos both inside and outside the factory, little did the company whose factory was being photographed realise that their practices would be questioned. Here is a factory that processes pig meat. The way the factory is designed is to optimise the number of pigs and the weight of these in order to get maximum production out of it. So, what is wrong with all this?
Emerging technology services have revolutionised the sourcing industry. These disruptive technologies like autonomics, interface technologies, big data analytics and other computing technologies have permitted smaller companies to successfully challenge established incumbent businesses. Specifically, as incumbents focus on improving their products and services for their most demanding (and usually most profitable) customers, they may exceed the needs of some segments and ignore the needs of others.
Ever since the 2016 elections, America’s outsourced manufacturing has consistently been front-page news. Now news stories are shifting towards the larger world of foreign imports, rather than just outsourcing. That means new policies and taxes that will impact, well, just about everything! That means all consumer goods, cars, electronics and a lot more. But what about... cartoons? Yeah… what about the Saturday morning ghetto, Hanna-Barbera, The Simpsons, and the Cartoon Network?
As regulations and consumer pressures shift and organisations are increasingly exposed to risk – reputational and beyond – the procurement industry faces a critical juncture. This dynamic has created a business environment where sustainable procurement programs are no longer just nice to have, but an integral organisational function that is responsible for protecting and improving brand reputation, driving revenue and mitigating business risk.
John Wanamaker once commented, “I know half the money I spend on advertising is wasted; the trouble is I don't know which half.” Likely this is often said of marketing as a whole - and in fairness, applies to other business functions as well. Have you struggled with this conundrum when considering your sourcing options for marketing spend? Proper mechanisms to track performance, ROI, and effectiveness need to be in place to ensure that the money spent is adding value and not being spent because you have always done it that way.
Robert Kurzban, Ph.D., an Associate Professor at the University of Pennsylvania in the Psychology Department, is a proponent of evolutionary psychology as a key to understanding human behaviour in all of its complexity.
Last October I attended the Sourcing Industry Group (SIG) Global Summit in Carlsbad, California - an event I have attended more than 40 times over the last 25 years. Why? Because professionally, it is truly worth the time and treasure required. Because of its strict “no selling” and supplier code of conduct agreement, attendees can freely collaborate and discuss topics without waiting for a vendor to start their sales pitch. Unlike traditional trade show vendor-fests, SIG attendees are typically about 75% buyer, 20% supplier and 5% advisor.
Raleen Gagnon is Director of Global Market Intelligence at ManpowerGroup Solutions, overseeing research and analysis related to global workforce trends, competitive workforce strategy, labour regulations, cost of labour, and hiring practice. Outsource got together with Raleen at last October's SIG Summit in Carlsbad, California, to hear about some of the key developments in the global labour market - and how procurement departments need to refine their approach to procuring people...