What To Do When Economic Volatility Strikes

Business priorities radically shift during a recession and sourcing strategy and execution must follow. But changing the sourcing strategy without due care to its execution creates new risk. Urgent short-term needs can force tactics that undermine long-term objectives. Smart sourcing teams will adjust their strategy in the light of the changed business context — then link that strategy to execution through clear policy changes. This preserves the foundation for exploring, preparing, and acting through a structured sourcing life cycle. Because your changing services requirements will affect your relationships with suppliers, you will need to re-evaluate your vendor selection approach. And you will have to take a new look at sourcing governance and metrics to keep these connected to the priorities of stakeholders across your organization.