Supply management is already a risky business — but taking even more risks can lead to even greater success.

Of course, that means taking intelligent risks, cautions a recent report from Strategic Procurement Solutions.  Don’t go out on a limb just because you think it might work. Still, this risk-taking philosophy flies in the face of convential wisdom: Isn’t it your goal to eliminate risk from supply chain operations? In today’s fast-paced procurement environment, the answer is a resounding “No.”

Yes, your Job No. 1 is creating and overseeing a secure supply chain, As part of that, though, taking at least minimal risks is the best and most efficient way you can progress in improving acquisition functions.

For starters, you should consider tossing aside thechess-game “old way” of negotiating contracts with suppliers, where the goal is to be the winner and not the loser. At the same time, you’ll want make contracts easier to read and easier to understand by jettisoning the legalese verbiage.

Other recommended risks that can help improve your procurement process include:

• streamlining your conventional approval process
• exercising a willingness to try “new” suppliers, and
• taking a step back from involvement in low-dollar transaction

Tags: contract, procurement, risk, supply management