Sourcing is not an easy game and at the same time, managing teams was never easy. Three of our nine barriers to successful sourcing can be related to the team dynamics, they are:

Rigidity

If the team (and / or organization) is resistant to change, it will not embrace today’s efficiency-producing software tools or leverage best practice sourcing procedures. The team will be resistant to acquiring new skills needed to operate in the global, fast-paced economy. Rigidity manifests itself in multiple ways:

  • A ‘yes, but…’ attitude: it will work great for the other commodity, but not mine, reflecting animosity to new ideas
  • Reliance on old methodology
  • Over-reliance on relationships (and incumbent suppliers)

Information Hoarding / Lack of Sharing

Lack of information sharing refers to the unwillingness of an organization to share goal and cost information among internal and external partners. Some organizations are so ultra-competitive that they undermine their own success by hoarding information about:

  • Best practices for a market, commodity, incumbent communication strategies, etc.
  • Supplier information – whether the supplier is a strong or weak partner
  • Success and learning

Collaboration Issues

Collaboration issues affect both internal stakeholders (users and influencers of a product or service) and external stakeholders (suppliers and business partners). Collaboration is often scary because it requires someone to give something away in order to get something. The fear is that the value given away is more than the value received. Additionally collaboration often involves a great deal of work and strong communication skills. However, the value collaboration provides is usually a better product (through collaborative design) and lower costs (through better procedures or material costs).

Aval Sethi