What should drive the decision-making process in developing supply strategies?

The decision-making process in developing supply strategies should be driven by consensus on value addition and organizational goals. This approach ensures that the supply chain aligns with the overarching objectives of the organization, fostering synergy between procurement activities and strategic initiatives.

Establishing a clear understanding of organizational goals allows teams to identify what is truly important, such as cost efficiency, quality, innovation, or sustainability. By focusing on value addition, organizations can enhance their competitive advantage and create long-term relationships with suppliers who can contribute to these goals.

While existing suppliers' preferences, historical data on past purchases, and trends in unrelated industries may offer valuable insights, they do not encapsulate the broader strategic framework necessary for effective supply strategy development. Relying on these factors alone may lead to choices that do not substantially further the organization’s goals or fail to promote innovation and adaptability in a changing market. Therefore, prioritizing consensus on value addition and alignment with organizational objectives is critical for making sound, strategic decisions in supply chain management.