Mark Krause

What People Think Strategic Sourcing Does vs. What We Actually Do If you ask someone outside of procurement what strategic sourcing professionals do, you’ll likely hear something like: “They buy stuff.” “They negotiate prices.” “They cut costs.” And while those answers aren’t wrong, they barely scratch the surface. As someone who’s worked in strategic sourcing for years, I’ve seen firsthand how misunderstood this role can be. It’s often viewed as a transactional, back-office function focused solely on cost savings. But in reality, strategic sourcing is a critical driver of business value, innovation, and risk management. Let’s break down the difference between perception and reality: 🧠 Perception: It’s Just About Price Most people think our job is to find the cheapest supplier and call it a day. But strategic sourcing isn’t about chasing the lowest number. It’s about total cost of ownership, long-term value, and supplier performance. We evaluate quality, reliability, sustainability, and risk. We look beyond the invoice to understand the full impact of a sourcing decision. 🤝 Reality: It’s About Relationships Strategic sourcing is deeply collaborative. We build and manage supplier relationships that support innovation, resilience, and growth. We partner with legal, finance, operations, and even marketing to ensure sourcing decisions align with broader business goals. We’re not just buyers, we’re strategic connectors. 📊 Perception: It’s a Spreadsheet Job Yes, we use spreadsheets. But we also use advanced analytics, market intelligence, and digital tools to forecast trends, assess risk, and model scenarios. Strategic sourcing requires a blend of data fluency, business acumen, and negotiation skills. 🌍 Reality: It’s a Strategic Lever In today’s world, sourcing decisions impact everything from ESG goals to supply chain resilience. We help companies navigate global disruptions, regulatory changes, and sustainability targets all while delivering value. We’re not just saving money, we’re shaping strategy. 🚫 Common Misconceptions “Indirect spend doesn’t matter.” → It does. IT, facilities, and professional services can be major cost centers. “Anyone can do it.” → Strategic sourcing requires deep category and/or process expertise, stakeholder alignment, and a strong understanding of business dynamics. “It’s a solo function.” → We’re constantly collaborating across departments and geographies. 💬 Final Thought Strategic sourcing is ever evolving—and so should the way we talk about it. It’s time to move beyond the outdated view of procurement as a cost-cutting function and recognize it as a strategic enabler of business success. If you’re in sourcing, share your story. If you’re outside of it, ask questions. The more we understand each other’s roles, the stronger our organizations become. #StrategicSourcing #Procurement #SupplyChain #BusinessStrategy #ValueCreation #SourcingExcellence

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Where is the supply chain profession headed next? At TPM26 I had the opportunity to speak with Jordan Zeldin, President of CSCMP - Council of Supply Chain Management Professionals. CSCMP sits at the center of the global supply chain leadership community — connecting executives, academics, and practitioners across industries. That vantage point gives Jordan a unique perspective on where the profession is evolving. One theme from our discussion stood out: ➡️ The supply chain profession is entering a new phase where discipline, resilience, and talent development will matter more than ever. In our conversation we discussed: • How supply chain leadership is evolving • Where companies are investing in talent and capability • What today’s volatility means for the next generation of supply chain leaders This was a great conversation about the future of the profession itself. 🎥 Interview below. #SupplyChain #CSCMP #SupplyChainLeadership #LogisticsLeadership #GlobalTrade #TPM26 #thecoolkids

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Procurement Has Evolved And It’s Time We Talk About It In my 20+ year career procurement and strategic sourcing have undergone a quiet revolution. What was once a back office function focused on solely on COGS savings has become a strategic powerhouse driving innovation, resilience, and competitive advantage. As someone who’s seen this transformation firsthand, I wanted to share five key shifts that have redefined our role in the enterprise: 🔹 1. From Transactional to Strategic Procurement is no longer just about issuing POs and negotiating prices. Today, it’s about aligning sourcing strategies with broader business goals, whether that’s entering new markets, supporting product innovation, or enabling digital transformation. We’re now expected to be strategic advisors, not just operational executors. 🔹 2. Technology Driven Transformation The rise of digital tools has reshaped how we work. E-procurement platforms, contract lifecycle management systems, and supplier portals have streamlined operations. But the real game-changer? Business Intelligence (BI) tools. They allow us to visualize spend data, track supplier performance, and forecast risks with precision & empower smarter decisions elevating procurement’s role in strategic planning. 🔹 3. Legal Risk Mitigation Through Contracts In today’s volatile business environment, procurement plays a critical role in protecting the organization legally. Well-structured contracts and favorable terms aren’t just paperwork, they’re shields against supply chain disruptions, price volatility, and compliance risks. Strategic sourcing teams now collaborate closely with legal departments to ensure contracts are airtight, enforceable, and aligned with business continuity goals. 🔹 4. Elevated Role in Risk Management Global disruptions from pandemics to geopolitical shifts have made supply chain resilience a boardroom priority. Procurement is at the center of this conversation. We’re tasked with identifying vulnerabilities, diversifying supplier bases, and building agile sourcing models that can withstand shocks. It’s now proactive, data-driven, and deeply embedded in sourcing strategy. 🔹 5. Stronger Cross-Functional Partnerships Procurement has broken out of its silo. We now partner with finance, operations, R&D, and even marketing to co-create value. Whether it’s supporting product launches, optimizing working capital, or enabling ESG initiatives, our role is collaborative and cross-functional. Final Thought: Procurement isn’t just evolving it’s leading. As we continue to embrace technology, mitigate risk, and drive strategic outcomes, our function is becoming one of the most dynamic and impactful areas in the enterprise. If you're in sourcing or procurement, I’d love to hear how your role has changed. What shifts have you seen in your organization? #StrategicSourcing #ProcurementTransformation #SupplyChainLeadership #BItools #ContractManagement #RiskMitigation #CrossFunctionalCollaboration

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Supply chain leaders need to be careful when they say: “Once I get my full team in place in about 6 months, things will be easier.” Most supply chain veterans know this is not the case. You shift from playing offense to playing defense. 👉 Then, you hoped to fill most of your primary customers’ orders with minimal backorders. 👉 Then, paying a premium for expedited freight was normal because your top customers were 80% of your business. 👉 Now, any chargebacks are being scrutinized by the C-Suite. 👉 Now, any variance between demand and forecast is questioned in your S&OP meeting. It’s almost like when your newborn is finally sleeping through the night after 18 months, now they have started crawling, and you have to baby-proof your entire home. You overcome one set of challenges, and another set of challenges stands in the way. Leaders who have scaled a supply chain program from manual processes to full-scale sustainability do two things well: Set expectations with all parties early on so they don’t get pushed around when problems arise. Hire and train their teams who can “work in the gray”. Once your supply chain reaches a level of maturity, the challenges evolve from managing daily execution to being a catalyst for overall company performance.

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All certificates from the Association for Supply Chain Management (ASCM) are essential for professionals aiming to advance in the field. However, the Certified in Transformation for Supply Chain (CTSC) stands out, as it focuses on technology and the latest trends shaping the future of supply chain management. At معهد ميلي | MELI Institute,we’re proud to support individuals and organizations in excelling through such high-impact certifications 🚀🩵

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A useful and data-backed look at ASCM’s executive compensation structure from Jeffrey McDaniels. Right now ASCM is not facing a revenue problem… it is facing an expenses problem. Accountability for restoring balance to the budget belongs to the board, and revising executive compensation should probably be their first step. ~Mr. Supply Chain® #SaveASCM #FreeSCOR

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I've worked with suppliers in Japan, India, Vietnam, and the US. Same forecast report sent to all of them. Four completely different outcomes. Most supply chain leaders think supplier management is about contracts and on-time delivery metrics. It's not. It's about whether your supplier actually understands your business — where you're going, what the data means, and how to tell you when something is wrong. Three things I've learned the hard way 👇 (swipe through) The Cummins supplier summit story will resonate most with senior supply chain people — it's the kind of thing that sounds obvious in hindsight but almost nobody actually does. The culture slide (Japan/India/Vietnam) will get the most comments because everyone has a war story. Post tip: Ask in the caption specifically — "Which supplier culture have you found hardest to align with?" That question has a strong opinion attached to it for anyone who's worked globally. Comments will flow.

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"Leadership isn’t about knowing it all" No leader in acquisition has all the answers. 🚀 The mission changes. ⚠️ The risks evolve. ⛓️‍💥 The supply chain shifts. Leadership is about: ✔️ Asking better questions ✔️ Listening to your teammates ✔️ Staying curious and adaptive The day you stop learning in acquisition → You start falling behind. At NASA-JPL I’ve learned more by listening to my teammates and industry partners than from any policy manual. 👉 Stay humble. Stay curious. Stay in growth mode‼️ What’s one thing YOU’RE learning this month? #LeadershipMatters #ProcurementLeadership #TransformationLeadership

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Given how defense companies are seeing increased supply chain disruptions (as are all companies), GXO worked with Aviation Week Network to set up a free webinar on how they're adapting! Budget realities, shifting relationships, risk mitigation... it should be a great conversation: https://lnkd.in/g5ebXcx2

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The Midwest isn’t “coming back.” It never left! Boeing bringing its Defense HQ back to St. Louis reinforces what procurement leaders already know: proximity to manufacturing matters. When leadership sits closer to engineering and production, suppliers gain visibility, stronger collaboration and greater opportunity to shape outcomes. This move strengthens the Midwest’s position as a backbone of the defense industrial base. Execution lives here. Procurement follows. #Procurement #SupplyChain #Defense #MidwestManufacturing #SupplierEcosystem https://lnkd.in/gMCe4fRC

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What I’m Hearing in Supply Chain & Ops Edition: “We’re planning for what we know—but it’s the unknowns that keep us up at night.” That’s a sentiment echoed by many supply chain leaders lately. With the U.S. signaling the return of reciprocal tariffs for certain countries, and the 90-day tariff truce with China nearing its end, companies are bracing for potential disruptions. The challenge? Balancing the known variables with the unpredictable ones. To navigate this landscape, forward-thinking organizations are: Investing in AI-driven forecasting tools to better anticipate demand fluctuations and supply constraints. Establishing Control Towers that provide end-to-end visibility across the supply chain. Bridging the gap between supply chain and IT by appointing leaders who can translate operational needs into technological solutions. Gartner predicts that by 2030, 50% of supply chain management solutions will incorporate agentic AI capabilities, enabling autonomous decision-making within the ecosystem. If your organization is still relying on outdated systems and siloed teams, it might be time to rethink your strategy. I specialize in identifying and placing leaders who can drive this transformation—individuals who not only understand the intricacies of supply chain operations but also possess the technological acumen to lead in this new era. Let’s connect and discuss how we can future-proof your supply chain. #SupplyChainRecruiter #ExecutiveSearch #Tariffs #SupplyCahinControlTower #OperationsStrategy #FoodandBeverage #CPGRecruiter

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Executive Supply Chain Hiring: The Model Matters Supply chain has evolved into a strategic lever rather than just an operational function. However, many senior hires continue to be made through contingency-only search methods, which may be effective for volume roles but fall short for critical positions such as: • VP / Director transformations • Confidential replacements • Network redesign • ERP modernization • Post-acquisition integration Top supply chain leaders are currently focused on leading operations, protecting margins, and driving EBITDA, which means they are not actively applying for roles. To access this talent, a structured approach is essential. In Canada, we are witnessing a notable shift towards: - Retained executive search - Fractional supply chain leadership As the supply chain function significantly impacts cash flow and enterprise value, it is crucial that the hiring model reflects this reality.

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For my March 12th Supply Chain Matters Podcast, I had the pleasure to speak to Donald Tumulak, PMP, a procurement transformation and strategic sourcing leader with more than 15 years of experience helping organizations optimize procurement operations, strengthen supplier governance, and drive measurable business value. I have known Donald for over 30 years and in short, he is my ‘Go-To-Guy’ for matters related to contracts and strategic procurement. Donald shared his most recent experiences working as a Strategic Procurement Lead in the insurance industry. Our conversation did get a bit side-tracked as we debated the vertical integration of the ‘Auto Body Repair Shop Industry’ into the larger tier Insurance firms (TD, Intact, Aviva). When the dust settled, the discussion pivoted to the usage of AI in procurement. We spent time discussing the role of AI in assessing supplier risk and contract negotiation/management.  It was a pleasure to spend some time with one of my early-on mentors and colleagues and hopefully the messages pertaining to the integration of AI and ‘top-down’ decision making in procurement management was clear to students.   Thank you Donald for your time and knowledge share! For George Brown Polytechnic Supply Chain students and faculty: a recording of the session is located under “Content” in our SCM Community on Brightspace. ON DECK: I am taking a (March Break) week off. The next Supply Chain Matters Podcast is scheduled for Thursday March 26th. My guest will be  Keith Sheardown, a Director at Network Rail Consulting. His career spans all facets of rail asset transformation focusing on operational readiness, reliability, supply chains, innovation, performance management and change leadership. The conversation will focus on Lean Practices, change management/transformation, where Keith will pull on his 40+ years of experience in rail and transit including his time in executive positions at Metrolinx and Bombardier. Get your free ticket to event at: https://lnkd.in/gsKkzYDy #scm #supplychainmanagement #georgebrowncollege #procurement #insurance #strategicprocurement #serviceprocurement #GBP

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As U.S. tariffs, trade policy, and the uncertainty surrounding them continue, supply chain leaders must brace for tariff volatility. Hear from Gartner for Supply Chain experts Lindsay Azim, Brian Whitlock, and Cori Masters to learn how CSCOs can tackle upcoming tariff implementations: https://bit.ly/3XSaghH #GartnerSC #SupplyChainPlanning #TradePolicy #TariffVolatility

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𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗮𝘀 𝗮 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲 𝗶𝗻 𝗚𝗹𝗼𝗯𝗮𝗹 𝗦𝘂𝗽𝗽𝗹𝘆 𝗖𝗵𝗮𝗶𝗻𝘀 Compliance isn’t just a regulatory requirement—it’s a strategic lever that drives resilience, efficiency, and trust across the supply chain. Over my 20+ years leading global operations and supply chain teams, I’ve seen first-hand how integrating compliance into sourcing and supplier strategy creates measurable business value. By implementing frameworks for RoHS, REACH, ESG, and international trade regulations, I’ve helped organizations: i. 𝗠𝗶𝘁𝗶𝗴𝗮𝘁𝗲 𝘀𝘂𝗽𝗽𝗹𝘆 𝗰𝗵𝗮𝗶𝗻 𝗿𝗶𝘀𝗸 and prevent operational disruptions ii. 𝗦𝘁𝗿𝗲𝗻𝗴𝘁𝗵𝗲𝗻 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗿 𝗿𝗲𝗹𝗮𝘁𝗶𝗼𝗻𝘀𝗵𝗶𝗽𝘀 through transparency and accountability iii. 𝗘𝗻𝗵𝗮𝗻𝗰𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗿𝗲𝗽𝘂𝘁𝗮𝘁𝗶𝗼𝗻 by demonstrating ethical and sustainable practices When compliance is treated as an integral part of strategic planning—not just a checkbox—teams are better positioned to navigate 𝗴𝗹𝗼𝗯𝗮𝗹 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀, 𝗱𝗿𝗶𝘃𝗲 𝘀𝘂𝗽𝗽𝗹𝗶𝗲𝗿 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲, 𝗮𝗻𝗱 𝗰𝗿𝗲𝗮𝘁𝗲 𝗹𝗼𝗻𝗴-𝘁𝗲𝗿𝗺 𝘃𝗮𝗹𝘂𝗲. I’m curious—how does your organization 𝗹𝗲𝘃𝗲𝗿𝗮𝗴𝗲 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗮𝘀 𝗮 𝗰𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲 rather than just a requirement? #SupplyChainCompliance #RiskManagement #GlobalOperations #ESG #StrategicSourcing #SustainableSupplyChain #OperationalExcellence

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We often talk about obsolescence as a sudden event—an End-of-Life notice that sends procurement teams scrambling. I believe we need to reframe this. Obsolescence is the predictable outcome of a mismatch between a product's intended lifespan and the lifecycle of its components. For industries with 10, 20, or even 30-year product cycles like aerospace and medical devices, managing this is paramount. Relying on the open market for a critical EOL part years from now isn't a strategy; it's a gamble. The most forward-thinking companies are treating obsolescence as part of the design phase. They ask: 🔄 How can we design for component interchangeability? 📈 What is our long-term roadmap for crucial semiconductors? 🔒 How do we secure and store critical components to guarantee availability for decades to come? This proactive approach turns obsolescence from a reactive crisis into a manageable, strategic advantage. How do you align engineering, procurement, and finance on a long-term obsolescence strategy? #ObsolescenceManagement #ProductLifecycle #Engineering #ElectronicComponents #LongTermThinking

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On Friday, I shared that under the FAR, purchase orders are included in the definition of a subcontract. Here’s the part that usually gets overlooked: Most procurement compliance issues don’t come from misunderstanding the FAR - they come from treating “routine” purchasing as low risk. That’s how gaps show up: Flowdowns aren’t considered Price analysis isn’t documented consistently Supplier files don’t get built until someone asks for them None of those feel critical day-to-day. All of them matter during a CPSR or DCMA review. The strongest procurement systems don’t rely on people remembering rules - they bake compliance into everyday buying behavior. Where do you see the biggest breakdown: policy, training, or execution?