Procurement Intelligence Unit

As a former colleague once memorably informed me, 'General Hindsight never lost a war'. He was a salesman, and used the phrase – which he had no doubt gleaned from another wise man – to explain how he had let a deal slip through his fingers because the right people weren't engaged at the right time. This brought to mind a conversation I had with a leading procurement figure from across the pond recently.

They explained that, although there was now a great deal of relief that economic conditions were improving (albeit gradually), major concern centred around the need to ensure that suppliers could keep pace as demand picked up. But whereas a number of organisations were now scrambling around to ensure that their supply base was in decent shape to cope with the demands likely to be placed on it over the next few months, their own company was left to indulge in a spot of self-congratulation on a decision made over five years ago.

Back then, of course, the global economy was in far more robust shape than it is now, but sensing that they needed far more of a presence in Asia, the company in question decided to move their entire sourcing operation to the region. It was a massive decision, and one that could easily have been questioned by senior management. However, this intelligence-driven approach is now beginning to reap the sort of rewards that have already justified that decision twice or three times over.

Having found themselves in such close proximity to the suppliers – and having employed much regional talent through the setting up of the operation – the company is clearly ideally placed to keep its finger on the pulse when it comes to gauging both the mood of its suppliers and their readiness to ramp up production over the next six months.

This close relationship also means that suppliers can flag up any problems and buy the company some much-needed time if supply chain issues arise and contingency plans have to be drawn up.

Now, of course, this doesn't mean that the company in question, or its procurement operation, can rest easy – if the events of the past two years have taught us anything, it's that complacency no longer has any place in the modern corporate world – but it does mean that it is far better placed than many of its competitors.

It's the sort of approach that the aforementioned General would doubtless approve.