STRATEGIC SOURCING ocean , the navigation of which requires a sturdy ship and a visionary captain . If procurement is that ship , then strategic sourcing is its captain .

Data as the lifeblood of strategic sourcing Knowing what we know about the swift and unpredictable changes that are capable of emerging and swiftly impacting procurement and supply chains on a global scale , Bhatia says : “ Using reactive / unplanned sourcing ( or non-strategic sourcing ) leads businesses to fail , especially considering that other industry players are flawlessly planning for raw materials , logistics , utilities , budgets and inventory to streamline their supply chains . So , to stay relevant , businesses need to adopt strategic sourcing into their operations and processes .

“ Strategic Sourcing is all about data formalisation ,” Bhatia says , before going on to say that this data can be in multiple forms – market data ( trends , technologies , growth , drivers , best practices ); supplier data ( financial , operational , performance , capabilities ); inventory data ; spend transactions data ; PO data , and contracting data .

“ The ability to utilise and monetise this data forms the foundation of strategic sourcing . So , data is extremely critical and integral to the entire process of strategic sourcing ,” he says .

TARUN BHATIA , HEAD OF GLOBAL PROCUREMENT PRACTICE , EVALUESERVE

Strategic Sourcing ’ s impact on ESG , Diversity & Inclusion , and Sustainability Bhatia believes that the strategic-sourcing function is perfectly positioned to take the lead in creating supply chain transparency on ESG factors , diversity & inclusion ( D & I ), and sustainability .

“ Strategic sourcing has the responsibility to strike the right balance between business procurementmag . com 47