If procurement doesn’t act as a pipeline for innovation coming from the supply base, a business can die. Or how about another way – if procurement doesn’t listen to suppliers warnings, it can be painfully slow to jump when cracks start to form in the market. When you look at companies that failed, you have to ask: did they listen to suppliers?

Thought Leaders is a series of regular posts from experts from across industries and regions, looking at the issues procurement faces today. In this post, Wayne Scott Evans, head of procurement americas for Deutsche Post DHL asks whether effective demand management is more valuable than traditional savings metrics.

Tracking whether suppliers are delivering value beyond cost is crucial to many procurement organisations is something often spoken about. But what’s not always covered as much, you suspect, is that it’s also a frustrating journey to get the point where you are realising the benefits of an SRM programme.

Consumers in the US and elsewhere are fretting that the prices they have been paying for food, clothing, appliances, electronics and other products will rise. Manufacturers have told them so. And why shouldn’t prices go up? Right?

Lamar Chesney, EVP and CPO for SunTrust banks is a good person to speak to if you want an honest view on how and why procurement needs to behave more strategically. He doesn’t mince his words either: “Often procurement talks about still not getting a seat at the table. Often that’s because they’re still not thinking and acting the right way.”