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3 Simple Strategies for Better Strategic Sourcing Post-2020

The past year has been a rollercoaster. The disruption that the pandemic has brought strategic sourcing has forced organizations to pivot and readjust. Procurement has been under immense pressure to evolve past these supply chain difficulties just for survival.

But moving forward into 2021 and beyond, organizations not only want to survive, but they also want to thrive. And that will require an evolution in the way functions practice strategic sourcing. Arkestro is committed to helping sourcing teams achieve their goals in 2021. So, we thought a great way would be to provide you with three simple strategies for better sourcing in this “new normal” era.

Many companies were able to weather the storm caused by the pandemic, lack of reliable tools, and lack of data, but there are always new challenges in sourcing.

With the demand never slowing down, and in some cases ramping up, sourcing needed materials for product offerings that began to feel like Mission Impossible. The pandemic shone a spotlight on strategic sourcing strategies, illuminating the cracks that most organizations never knew were there.

This unforeseen devastating event has become the catalyst for change. The way we see it at Arkestro is, this can be a time for reassessment, restructuring, and implementing new strategic sourcing software to predict sourcing opportunities, improve cycle time, and never leave money on the table.

Well into 2021, now is the time for analysis and action to uncover risks across the supply base, address the digital divide, and prepare for what happens next. These three strategic sourcing tips are vital areas companies can focus their energies on for better strategic sourcing.

Diversify Suppliers

Ensuring you have both solid and reliable global and local suppliers will be critical moving forward. If you were a company that centralized buying before, you were most certainly faced with an intense squeeze. The global situation is still constantly shifting, and restrictions and regulations regarding operations and functionality vary in each region of the world. Even today, as we continue to fight through the pandemic, the ability to turn to and rely upon local resources has never been more crucial.

Besides diversified sources of suppliers, one also needs to carefully and purposefully select suppliers who are creative, innovative, and agile. If the past year has shown us anything, it is that organizations need to be working with suppliers that are flexible and ready to adapt to whatever is thrown their way. This may mean making new and seemingly risky decisions, like opting to go with a small, lesser-known local supplier who shows these vital qualities versus your previous go-to preferred larger supplier. Often, you will even be pleasantly surprised to discover that it’s the smaller outlets that can be far more flexible.

Don’t Underestimate Data

Simply put, data talks, and access to it can help you be more predictive. Analytics allow you to keep tabs on how you are doing, tracking your progress with clear and measurable numbers. Using Arkestro for example, with any shifts, like numbers spiking or dropping, you are instantly alerted to a trend. This enables you to pivot to address whatever issue was at the root of the dip or rise. Arkestro is able to help you even predict the future, essentially.

Data can also help with supply management, which needs to be central and distributed to avoid any potential hoarding situations or other shortages. Arkestro’s Predictive Procurement Orchestration Platform can help your company decide exactly how much product you need to allocate to where, which prevents any surplus or undersupply issues.

Don’t Be Stiff: Stay Agile

Agility is a trend for 2021 and is a business imperative. We have seen how organizations have to be willing to adapt to thrive. The only constant in the world is change. With change management and risk mitigation in mind, how your organization faces challenges and can react (and adjust) to these changes as they come will directly influence success. It means that flexibility, agility, and implementing the right tools to help those efforts is crucial.

When strategic sourcing teams use Arkestro, supplier partnerships strengthen and grow. Through mutual transparency and real-time collaboration, you signal the importance of supplier relationships to your sourcing team and plant a vital seed for the foundation of your partnership with strategic suppliers. With the messaging and tasks feature, increased transparency and collaboration grows. Acting as a centralized source of truth for all sourcing activities, buyers can communicate directly with suppliers, eliminating the need for back-and-forth emails and gray areas, consequently developing into a mutually beneficial partnership.

In these volatile times, Arkestro helps your business stay ahead of the market. We are the first and only predictive sourcing software provider that can help you get better quotes faster and see market trends before they happen.

To discover how you can cultivate your most successful partnerships and stay head of market trends, visit arkestro.com to learn more.

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Rob DeSantis

Founder

As a former co-founder of Ariba running sales, Rob has deep expertise in the procurement space, having helped propel Ariba from zero to $250 million in revenue in four years and IPO of the year in 1999 before its acquisition by SAP a decade later. In addition to co-founding Ariba, Rob was also an early angel investor and board member of LinkedIn, the world’s largest professional online network.

More recently, Rob served as an investor and advisor to a small portfolio of companies including Bloom Energy, AEye, Inc., HiQ Labs, Agiloft, USEND and more. He is also a co-founder of Dibbs Technology and TrueParity. Rob holds a BSME from the University of Rhode Island.

Marty Meyer

Chief Financial Officer

A trusted partner and advisor on the executive team, Marty has a unique background having been the CFO of nine venture backed technology companies. Marty has raised over $300M in venture funding and has closed six strategic M&A transactions with a combined value of over $1B. Marty has deep domain expertise in ecommerce, consumer internet, networking, data security, data privacy, media technology and enterprise software industries. Marty is especially experienced in the finance and operations activities of SaaS companies and is driven by data and metrics to help create outstanding customer experiences and drive efficient growth.

Neil Lustig

President and Chief Operating Officer

Neil is a seasoned executive with over 30 years of experience leading and building teams in Tech. Neil brings insights from a variety of market spaces and company sizes. Most recently Neil was the CEO of GAN Integrity, an innovative SaaS Compliance technology company serving enterprise customers in North America and Europe. Before that Neil was the CEO of Sailthru, a leader in ML driven personalized multi-channel marketing communications for media and e-commerce markets. Prior to that Neil was the CEO of Vendavo, the leader in B2B price optimization and management for large enterprises. Before Vendavo, Neil led the commercial team at Ariba, the market pioneer that defined and created the eProcurement space. Neil served as the GM of Ariba Europe and subsequently the GM of Ariba North America. Neil started his career at IBM where he spent sixteen years, initially as a software developer, and then twelve years in a variety of Sales and Marketing roles

 

Neil has a BS in Computer Science and Applied Mathematics from SUNY Albany. He is a native New Yorker, Brooklyn born, and still resides with his wife and three children in New York City.

Bonnie Adams

Director of People Operations

Bonnie is a People Operations and HR veteran, with over a decade of experience establishing successful people and culture functions for early to mid-stage tech startups going through high growth phases. She has a passion for supporting and creating inclusive and collaborative work environments and is well-versed in driving positive changes in her organizations as a trusted leader. Prior to joining Arkestro Bonnie worked as the People & Culture Coordinator for Ionic Security, helping them scale from 5 to over 200 employees in addition to a $120M funding round. Most recently she was the Head of People & Culture for blockchain innovator Storj Labs and was the Director of Human Resources at PrizePicks, the largest independently owned Daily Fantasy Sports platform in North America.

Arym Diamond

Chief Revenue Officer

Arym Diamond joined Arkestro in January 2022 bringing over 20 years of experience in the enterprise software and consultancy industry.  He is responsible for the worldwide go-to-market revenue strategy. Prior to Arkestro, Arym was Chief Revenue Officer at CalAmp focused on Telematics and Logistics. He also served as the area vice president of North American Sales within the Salesforce.com Enterprise Business unit for Einstein Analytics & AI, where analytics and machine learning were re-imagined for the front office.  Prior to that, he spent over 10 years at Oracle in various sales positions. Arym holds an MBA from the University of Southern California Marshall School of Business, and an undergraduate degree from California State University.

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