Changing Times for Sourcing and Procurement: Kevin Vaughan Explains Why the Conventional Global Supply Chain is Being Radically Rethought (Sourcing and Procurement‪)‬

In assessing today's supply chain management industry and, in particular, developments around sourcing and procurement, I cannot help but be drawn to the words of musician and poet, Bob Dylan, when he said: "The times they are a-changin'." For practitioners and anyone else touched by the supply chain management industry, there is no doubt that, yet again, we are living through a period of significant change and turmoil. The recently hailed models of doing business (large orders, sea deliveries, longer product lifecycles, etc.) are being turned on their head and being replaced with new and emerging business models (based on delivering collaboration, transparency, risk management, sustainability, measuring total supply chain costs). Like everything else, however, change brings its own set of opportunities and threats; and, for those companies, particularly operating in the European markets, who adapt best to the latest trends, the future could now indeed look a lot brighter. Procuring materials used to be about finding the right suppliers, checking quality, pricing and service, and shipping in large quantities from 'low cost countries.' However, rising costs in some Asian countries (by as much as 30%), with more increases to come owing to compliance costs for health/safety requirements, fuel increases, carbon footprint and the drive to achieve sustainable procurement, etc., are beginning to force a rethink in where we source and in how we procure product. When you add the impact of the natural disasters of Japan and New Zealand, with instability and change throughout the Middle East, the risks that influence the dynamics of the supply chain are shaping decisions on sourcing policy and causing many to rethink their positions regarding their reliance on lengthy lines of supply from distant locations.