Are your sourcing goals futuristic too?
So how did your sourcing function perform this year?
Our performance indicators are usually measured by targets, that are linked to measurable corporate and functional goals. For sourcing, typically goals fall into 3 categories - savings, supply and supplier performance. Definitely these goals aid the annual corporate results year on year. But do they also cater to the future evolution of the Sourcing function?
Performance systems should also ensure that in the long term the Sourcing function is viewed as vibrant, flexible, evolved and innovative.
Today's goals need to cater to this. And harnessing experience as the goal can help take Sourcing to the next level.
The experience that each individual has during the course of sourcing projects is invaluable. When the group is small, and cohesive, the personal touch can be relied on, but if we want to manage scale, we need a formal process that taps and tracks the knowledge created during sourcing. We can include contribution of sourcing knowledge to development and evolution of frameworks, benchmarks, category experience, market analysis, supply risks and so forth, as a performance indicator for Sourcing Managers.
The scope of the performance systems should include the number of contributions, quality of contribution, impact of the contribution on the future evolution. That is one way of ensuring that Sourcing Professionals not only serve the current needs but contribute to the future...