To deploy an effective ongoing spend management strategy, it is important for procurement professionals to define the relevant data and put a tool in place to regularly survey their databases and other spend environments to gather that data. When organizations continually refresh their view of spend data, they can keep track of what they are spending with each supplier and readily calculate risks.
It is crucial for procurement professionals to look for potential breakdowns in their supply chains. Potential risks include geopolitical factions and having too many suppliers in one part of the globe. A global and diverse supply chain ensures that if there is a breakdown in one area, organizations can turn to another to make up for the loss.
Procurement professionals must have a long-term global strategy to achieve long-term success. They need to gain executive support as well as help from an experienced vendor to bring together spend and advise on a spend strategy.