The Hidden Costs of Tariffs: Why Your Procurement and Supply Chain Team's Morale Matters More Than You Think
Regulations and Policy
Traditional performance metrics for procurement teams, such as cost savings based on last price paid, are proving inadequate in the face of rapidly changing tariffs and market volatility, writes Edmund Zagorin, the founder and chief strategy officer of Arkestro. New metrics, such as margin impact, more accurately reflect procurement's direct contribution to profitability, Zagorin notes, adding that by aligning targets and frameworks with these updated measures, organizations can better capture the strategic value of procurement and supply chain work in today's complex environment.
Full Story: Forbes (11/07)
How to Regain Trust After a Leadership Misstep
Leadership
A single grave mistake in your leadership, be it in private or in public, is enough to destroy the trust you've worked so hard to build with your teams and stakeholders, writes Allison Dunn, CEO of Deliberate Directions, who recommends owning your mistake without excuses, assessing the damage and creating a recovery plan that could include relinquishing some duties or communicating next steps to repair trust. "The people affected by your misstep are watching for signs that your leadership has grown from the experience. They might not be expecting perfection, but they do look for evidence of real change," Dunn writes.
Full story: Deliberate Directions (11/10)
20 GPT prompts that every procurement professional needs
Innovation
Procurement professionals can leverage ChatGPT to manage and mitigate risks proactively, writes procurement expert Kseniia Litovskaia, who offers practical prompts to help identify potential issues, such as delivery delays, political instability or quality concerns, when sourcing from new regions. Other prompts can be used for spend analysis, RFP drafting, risk management and supplier communication, writes Litovskaia, emphasizing the importance of ethical considerations and the need to review AI-generated content before use.
Full story: Supply Chain Management Review (11/05)