This week’s webinar notes are from a February 3rd webinar hosted by SAP Ariba and presented by Ed Cone at Oxford Economics and James J. McDonald and Luisa Gonzalez at COACH. The event is available on demand here.
Our family loves to play all types of games – cards, board games, volley ball, croquet and so on. This summer we have played a good deal of cribbage. It keeps the ‘mental math’ gears going as well as developing the various strategies and approaches. Of course, sometimes it is just about the luck of the cards you are dealt.
The End of Competitive Advantage by Columbia Business School Professor Rita Gunther McGrath provides a perspective on the way businesses should develop and maintain their strategy to remain competitive. Gone are the days when companies could achieve a leadership position in a market and then continue to dominate for decades without significant changes. Innovative companies develop products across traditional sector lines, making the industry-based model of competition assessment obsolete. McGrath advises defining competitive strategies based on arenas, which she defines as smaller market segments defined by consumer behavior and geography as well as the product or service being sold.
This week’s featured event was hosted by Sourcing Interests Group and presented by Denali Group’s John Evans and Grant Dearborn. Their ‘Five Steps To Creating A Successful Procurement Strategy’ logically started with their working definition of strategy, one that is specific to procurement:
“[Strategy] Defines a plan for optimizing external spend, procurement operations and other value contributions in a manner that supports the overall corporate agenda.”
This week’s eSourcing Wiki-Wednesday topic is Sourcing Success Enablers. Under the Organizational Best Practices heading is a brief paragraph that gets to the heart of what all procurement and supply management departments need to stay focused on:
“As part of a supply chain focus, successful companies do not overlook indirect categories. Chances are some categories (such as office equipment, professional services, etc.) consume a significant part of the total organizational spend and will also benefit from a review. Strategically source everything. (Often strategic sourcing means outsourcing procurement of non-critical, low value spend, or commodity categories to external organizations that also follow strategic sourcing principles.)”