The most successful procurement teams do not just react well to price increase letters; they build systems that make those letters irrelevant. Managing indirect categories requires a shift from spot-buying to long-term category strategy. 1. Build "Should-Cost" Models Do you know what it should cost to maintain your
When a supplier sends a price increase letter citing "market conditions," your first response should not be a flat rejection; it should be a demand for transparency. If your organization is currently accepting increases without data-backed pushback, use this four-step framework to regain control. 1. The Justification Audit
In many organizations, direct spend (which includes raw materials and production goods) is guarded like a fortress. However, indirect spend, comprising the software, facilities, and services that keep the lights on, often has an open gate policy. When a price increase letter for a SaaS platform or an office cleaning
After publishing the first two parts of this series, I heard the same sentiment from leaders across industries: “We use AI and it’s very useful, but we can’t scale the results.” The good news is that most organizations are not far behind their peers. The bad news is
(2026 and Beyond) Let’s be real. Layoffs and market shake-ups have everyone asking: “What’s next for procurement careers?” Here’s the good news, roles aren’t disappearing, they’re transforming. And if you want to stay ahead, here’s where to put your energy. Embrace Digital Skills Forget
(From Cost Control to Strategic Impact) Let’s talk about what’s changing. Sourcing and procurement aren’t what they used to be. Gone are the days when these roles were all about cutting costs and pushing paperwork. Today, they’re stepping into the spotlight as strategic drivers of resilience,
Most AI initiatives start with a quick win and a spike of optimism. A prototype that automates a task. A chatbot that actually works. Teams get excited, executives buy-in, and then reality chimes in: It’s not adding any value. According to McKinsey's 2025 State of AI, 88%
Part 4: Best Practices for Managing a Category We’ve been talking about categories all week, if you find yourself in the category manager position or newly appointed, here are the best practices to set you up for success. 1. Understand Spend & Supplier Landscape 1. Analyze historical spend data
Part 3: Largest Categories & Staffing Models If you are in the world of procurement or sourcing, your longevity will be based on your strategic alignment to the most important categories of spend to a business. So what categories dominate spend and require specialized attention? Unsurprisingly Information Technology is often
Part 2: Common Categories by Organization Size So now that we’ve learned what Direct and Indirect categories are, I figured it was now time to align this to business size because the categories of importance vary based on how large of an organization you are. A Small Business starts
A friend of mine survived a layoff. Their gift? Keeping their job and yay more categories to manage in the same amount of time! So, this week, I’ll be breaking down what Sourcing Categories are in a four-part series. Part 1: What are Sourcing Categories? In procurement, categorization is
I recently had coffee with a former colleague who's leading their company's AI transformation. When I asked how it was going, they paused and said, "Honestly? We're deployed multiple models and built a few inhouse tools; everyone's excited, but I have