“Impact sourcing results in a more engaged and motivated workforce for companies, and enables them to increase their global competitiveness.” — The Rockefeller Foundation
You need the work done and there are countries that are disadvantaged, war-torn or underemployed that have motivated, educated workers who can perform the work you need. It truly is the correct choice. Why continue outsourcing to developed countries or countries in which the vast majority of people already have access to the middle class?
Did you know that outsourcing to India is the number one reason it now has a thriving middle class? Are you aware that through outsourcing an entire generation was lifted out of poverty in both China and India? Do you know that when you outsource to a country, it can change the trajectory of people’s lives? In a 2003 speech, Anne Krueger, First Deputy Managing Director of the IMF stated that the impacts of globalization have benefited both India and China by lifting millions of people out of poverty since 1980 and putting tens of millions of people firmly into the middle class. In addition, China has seen their extreme poverty rate fall from 84 percent to about 10 percent largely because of trade, reports the Economist.
Do you ever get that funny feeling in your chest, like butterflies, when you are really excited that something is about to happen? You know, when you can’t help but smile and feel a little giddy? Well, that is happening to me right now and has happened pretty much every single day since we started 2019. I am so excited about all the new changes we are bringing to SIG.
You Spoke, We Listened
I am thrilled to announce that we are going from over 35 live, networking events per year to four one-day events, while still hosting our two Global Executive Summits and Executive Immersion Training Programs (the next one is February 7 in New York City). After two years of going to cities all over the U.S. multiple times a year, you get to know the locals really, really well. And while the nearly three dozen annual events provided incredible benefits to our members, we realized that some of our “regulars” were not attending as frequently.
Shopping, buyers, shopping carts, savings, back office, JUST STOP DUMBING US DOWN!
As many of you know, my passion is to help elevate the sourcing industry to receive the attention, seat, respect (and yes, pay) that it deserves. So why do sourcing professionals keep self-sabotaging by using the term BUYER to describe ourselves? The only time this is a sexy title is perhaps if you are the buyer of fashion who attends runway shows and hobnobs with designers. Buying is what I do when I “shop,” like for groceries. We as sourcing professionals are NOT shopping.
So onto my next pet peeve, why do we have cute little icons that look like grocery carts to check out within our tools? Yes, it makes it seem like an easy process when pushing it out to our internal customers, but it connotes “shopping,” which, as we have just discussed, we are not doing. We are selecting items from a carefully sourced category after a lot of thoughtful processes have taken place. Why can’t we use an icon that better showcases the importance of this role?
I’m proud to say the feedback from delegates on the Fall Global Executive Summit is some of the best I’ve received for any Summit yet. The beautiful Omni Rancho Las Palmas Resort & Spa was the perfect destination to engage with our cutting-edge keynote panelists, along with hands-on learning in how-to labs, breakout sessions and outdoor networking with a breathtaking view of the mountains. But what excited me the most at this Summit was the inaugural Future of Sourcing Awards, where we recognized individuals and teams who are making a transformative impact on the industry.
Future of Sourcing Awards
The energy at the Future of Sourcing Awards was electric! It was inspiring to be in the presence of both the titans who have helped shape the industry, the leaders who are taking sourcing and procurement to the next level, along with the up-and-coming talent that is our future.
It was my extreme pleasure to present SIG’s original founder, Barry Wiegler, with the Lifetime Achievement Award. Barry gave a moving speech and was even surprised by his daughter and grandson who flew in for the special occasion. There was barely a dry eye in the room.
We just concluded our Washington, D.C. spring Global Executive Summit and it was fabulous. From the beautiful hotel (the Omni Shoreham is a grand old lady) to the incredible speakers and leading-edge content, to wonderful networking and connections made all week long, the Global Summit was incredible. We had leadership keynotes from Steve Ford, son of former President Gerald (Jerry) Ford and David Rowan, editor of WIRED magazine in the UK and columnist for GQ…and industry keynotes on everything from how to incorporate digital technologies into our daily jobs to learning from our successes (and failures). Forty-plus breakout sessions supplemented the plenary events with both groundbreaking ideas and tangible takeaways. And the Wednesday night entertainment was widely touted as being one of the best ever!
This Global Summit was also the kickoff for the SIG Innovation Accelerator where “short-listed” providers presented cutting-edge technologies to a room of 55 buy-side executives. The feedback from those in attendance was phenomenal, with input on how to make the technologies more relevant to those in sourcing/procurement and 59 requests to learn more (many chose more than one). Visit www.SIGInnova.com for more information.
It was Made in America Showcase Week recently, according to the current administration (funny that it also coincided with Russia Week on Stephen Colbert). Anyone, wherever they live, likes to see local people employed. Whether it is an American who likes to see products marked with “Made in America,” a Canadian who swells with pride for “Made in Canada” or a British person seeing “Made in the UK.” The fact of the matter is that very few people are willing to pay more for those items. According to a recent Reuters/Ipsos poll, 70 percent of Americans think it is “very important” or “somewhat important” to buy U.S.-made products.
Despite that sentiment, 37 percent said they would refuse to pay more for U.S. made goods versus imports. Twenty-six percent said they would only pay up to 5 percent more to buy American and 21 percent capped the premium price at 10 percent.
In addition, it is the lowest of wage earners who like “Made in America” and yet they are the least likely to be able to pay the premium. The reality is that most of us feel a patriotism to our own country and kinfolk, yet we are actually beholden to our wallets. The same lower wage earners who say they prefer made in America, and per the Reuters article said, “Indeed, the biggest U.S. retailer is well aware of the priority buyers place on price above all else.” A spokesman for Wal-Mart Stores Inc. said customers are telling them that “…where products are made is most important second only to price.”
When people discuss the Internet of Things (IoT), you often hear them talk about the doomsday aspect of being hacked. I understand their concerns but prefer to see the way my life has become exponentially better with my connected devices. I took a quick inventory—I currently have 44 IoT devices in my house. I was shocked at the number, I thought maybe I had 10—a dozen at most, but when I started counting I quickly realized I had many more. I started with the obvious ones: Amazon Echo (Alexa), three Nest thermostats, three Nest security cameras, six computers—wow, I got to 13 quickly. When I started to really think about it though, I realized I have many more. I also have Alexa-controlled lighting, a web enabled garage door, a Tesla, three televisions, two Apple TVs, three Fitbits, a Fitbit synched scale (Aria), a Sonos system, an Amazon Echo Dot, three iPads, two tablets, three Kindles, five cell phones and even a smart meter for my daughter’s Type 1 Diabetes glucose monitoring and insulin system, and the list goes on. I am waiting for my Spinn coffee maker to come (that will reorder beans when I am low and which I can control from an app while still in bed), and already have four Amazon buttons that reorder everything from laundry detergent to paper towels to dishwashing liquid and cat food. Oh, and how about my ADT security system? Wow…I am overwhelmed by how many ways my life is connected to the internet, and I suspect that I’m forgetting some of my devices.
What does going from three to eight billion connected human beings mean to the global economy? Companies like Facebook (Internet.org), SpaceX, Google (Project Loon) Qualcomm and Virgin (one Web) are in the process of rolling out the connectivity to every human on earth.
They are not rolling it out the way we started either, i.e., with a dial up modem on AOL. Rather, they are providing connectivity to exceed one megabit per second. Imagine when there are more than 5 billion people connected to the internet accessing information on Google, Amazon, artificial intelligence with Watson, cloud, 3D printing and more. Just imagine.
How are they connecting the rest of the world? Through technology, of course…but in ways you may not expect. Project Loon is using a fleet of balloons traveling just inside the edge of space to provide connectivity to remote geographies around the world. “Internet is transmitted up to the nearest balloon from our telecommunications partner on the ground, relayed across the balloon network, and then back down to users on the ground.” The connection speeds are astounding. “Project Loon has taken the most essential components of a cell tower and redesigned them to be light enough and durable enough to be carried by a balloon 20 km up in the stratosphere. All the equipment is highly energy-efficient and is powered entirely by renewable energy - with solar panels powering daytime. Each balloon has a coverage area of 5,000 square kilometers.”
To truly innovate, you need a certain kind of leadership in your organization. I always look for and hire people who have an insatiable curiosity and who become bored easily. I truly believe if you have the desire to constantly look toward the unknown you are a person who does not like executing the existing.
In John Sculley’s book Moonshot he speaks about how the traditional education system harms our ability to innovate. By making students remember and recite, we reward children by giving As for the right answer versus asking the right question. We reward people at work for executing according to plans, not for taking risks and for having a futurist mindset. Instead of thinking about how to do something better, we need to start with “do we even need to do it at all?”
Let’s discuss accretive manufacturing. What? Haven’t heard that term yet? That’s because accretive manufacturing is just a fancier name for 3D printing. You may never hear it referred to as accretive manufacturing, but mark my words…the supply chain industry is about to be disrupted to an unrecognizable extent by it. In 2016, Honda released a single-seat “micro-commuter” vehicle with the body and majority of the panels having been 3D printed. In the meantime, Boeing expects to shave $2 to $3 million off each 787 Dreamliner's manufacturing costs by 2018, thanks in part to 3D-printed titanium. So if Boeing can now 3D print parts to an airplane and auto manufacturers are now 3D printing dashboards—and even entire vehicles—how long do you think it will be until we require almost no inventory because we can 3D print on demand any item we desire?
At home if I break a spatula, I can now 3D print a replacement. Granted, I am only printing with plastic and lack the tools to print an exact replica, but when it only takes an hour to print with specifications that are available for free online at a cost of only 15 cents (plus a little electricity)…isn’t it worth considering? Even Amazon Prime same day delivery (not available where I live) can’t beat that timeline and price.