What do you do if your supplier sourcing heavily relies on technology?

Mandate disaster recovery plan and business continuity playbook for all major systems ; conduct mock tests and review the risks and address them regularly.

Technology should be tailored to where it is needed, sourcing can never have a one fits all strategy. Example: i would definitely rely on technology for sourcing fast moving ‘C’ level type of materials where pricing is highest priority while supply loss is not a challenge, while on a flip side of things i would tailor a more hands on detailed and customized sourcing process for major ‘A’ level type of items that contribute directly to my sourcing security, product quality and customer opinion. Risks in each should be cleared, validated, quantified and monitors in a continuous process.

Consider establishing a dedicated technology innovation partnership with your suppliers. Rather than relying solely on existing technology, collaborate closely with your suppliers to co-create and implement cutting-edge solutions tailored to your specific needs. This approach involves sharing insights, pooling resources, and jointly developing innovative tools and systems that optimize sourcing processes, enhance efficiency, and ensure timely and accurate deliveries. By fostering a culture of innovation and continuous improvement, both you and your suppliers can stay ahead of the curve, adapt to changing market dynamics, and maintain a competitive edge in the industry.

Discuss the importance of risk assessment in a technologically driven supplier sourcing process. Identifying Potential Risks: Outline common risks such as cyber threats, technological obsolescence, and reliance on single-source tech solutions. Risk Management Strategies: Present strategies like regular technology audits, contingency planning, and continuous monitoring.

Ensure you have robust and up-to-date systems in place. Regularly assess and upgrade your technology to keep pace with advancements in the field, such as AI-driven analytics for better decision-making and blockchain for enhanced transparency and security. Training for your team is crucial to maximize the potential of these technologies, so invest in continuous education and professional development. Also, implement strong cybersecurity measures to protect your data and systems from breaches. Regularly back up data and have contingency plans to maintain operations during tech failures. Staying at the forefront of technological integration will enhance your sourcing efficiency and competitiveness.

Explain the need for system upgrades to keep up with technological advancements. Evaluating Current Systems: Advise on conducting evaluations to identify gaps or needs for improvements. Plan for Upgrades: Recommend establishing a schedule for regular updates and upgrades after evaluations.

Stress the importance of staff training to maximize the technology used in sourcing suppliers. Training Programs: Create a case for customized training programs that focus on the specific tech tools used in the organization. Continuous Learning: Emphasize the need for ongoing training to keep pace with technological updates.

Argue for the diversification of technological tools to avoid over-reliance on a single system. Multiple Technology Platforms: Suggest using a variety of technology platforms for different facets of sourcing. Vendor Diversification: Discuss the benefits of using multiple technology vendors to reduce risks.

Things change! Geopolitics, laws, suppliers goals, shareholding, regulations, etc Constantly monitoring the way you approach sourcing be it through tech or through tailored more hands on approach; is essential and always will be your best contingency and prevention policy. But most of all using insights of such monitoring to continuously put in place improved policies and strategies safeguarding you supply keeping it resilient and with a high visibility is an unavoidable requirement for any successful supply chain of business in general.

Highlight the need to keep abreast of technology trends that can impact supplier sourcing. Market Research: Encourage staying updated with market research and emerging technologies. Adopt Innovations: Give examples of how new technologies can be integrated into current systems.

Emphasize the role of relationship building with tech vendors and suppliers. Partnerships Over Transactions: Illustrate shifting from transactional to partnership approaches. Collaborative Tech Development: Encourage joint efforts in technology development or customization.

A deep understanding and involvement in global tech trends is critical! Today having AI evolve in light speed will inevitably disrupt many aspects of how we approach sourcing in general and tech we use in specific to a level where any argument put forward here can be flipped upside down! Keep being relavent in the tech space is a must and having a technology task force that understand both business side and the tech world is not a luxury. We can anymore avoid having tech skills as requirement for skill sets in our supply chain and procurement staff! The future is here and it is evolving fast and this is the biggest risk yet where in a blink of an eye we can be left behind

Discuss additional considerations in a technology-centric sourcing strategy. Legal and Compliance Issues: Talk about the legal implications and the importance of compliance in tech endeavors. Sustainability and Ethics: Touch on the necessity to consider ethical sourcing and sustainability when deploying new technologies.