What’s the very first thing that comes to mind when someone says sourcing?
“Outsourcing” would be most people’s response, and what does that mean to the average American blue or even white collar worker? The steady flow of jobs being transferred out of the country would be present in the thought process. Sourcing in general has the tendency to promote negative connotations and emotions from those who are not familiar with its full capabilities.
Sourcing practices have come a long way over the past few decades and continue to expand during
these uncertain economic conditions. Businesses are seeking the assistance of procurement service providers and even making them a staple within the organization. Efforts are extending beyond the immediate need for companywide cost reductions as relationships are being built with the expectation of long term results. While conducted in 2007, KPMG’s Strategic evolution – A global survey on sourcing today presents a dynamic view on sourcing trends from the perspective of both clients and service providers. Among the key findings of their study was this nugget:
“Today’s globally competitive business environment is forcing organizations to take a harder look at their operations in order to compete effectively. As a result, it is no surprise that senior executives are looking at their business functions with an eye to achieving business objectives faster, reducing costs, and improving service and process effectiveness and quality.”
The results of this survey and the above quote demonstrate that not only is strategic sourcing continually on the rise but that organizations believe that they are more often than not benefiting from the relationship with their service provider. The true strength of the business collaboration is defined by the tangibility produced in their results.
The survey demonstrates that the mindset around sourcing is similar to most situations in our lives; it requires that the end user educate themselves. Sourcing is not something that needs to be viewed with a negative attitude. Unfortunately most non-believers will not be convinced until they experience it for themselves. Businesses are finding that in order to remain competitive among their peers they need to have an edge. A wise man once said, as long as you know one more thing than the other guy, you’re an expert. Sourcing professionals are successfully providing that edge for companies.