Insights

The writer compares the innovations in baseball analysis made famous by Moneyball, particularly the shift from batting average to on base and slugging percentages, to necessary changes in procurement and supply chain management post-pandemic. Rather than focusing solely on savings, companies should consider the broader value of supplier relationships and interactions, much like baseball teams now value other metrics, beyond hitting.

From the late 1990s to early 2020, sourcing became the primary tool for procurement professionals, driving savings and consolidating supplier bases. Its success was rooted in predictable pricing, available supply, and reliable delivery. However, the global COVID pandemic disrupted these conditions, making pricing unpredictable, supply scarce, and delivery chaotic. Consequently, procurement professionals experienced a shift in leverage from buyers to sellers and had to diversify their procurement toolkit to adjust to the new market realities.

In Q2 2023, executives should focus on three key areas: addressing financial and cyber risks following recent bank collapses and cyberattacks; enhancing supply chain resilience and risk management as highlighted by the COVID-19 pandemic; and incorporating Sustainability and ESG considerations into supply chain management, in response to new SEC guidance.