Strategic Sourcing Was Always a Compromise
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Strategic Sourcing Was Always a Compromise
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In this episode of Algo Ego, I go solo for a long-overdue lecture on a thesis I've been building over the past several months: Exact Purchasing. The argument, simply, is that Peter Kralik's 1983 HBR matrix has run procurement for forty years, but it was never the right answer. It was the most procurement could afford to do with the labor it had. AI changes that. I walk through the four quadrants of Exact Purchasing (market risk, cost architecture, transaction capture, relationship governance), then turn the lens on the legacy procurement SaaS stack and call code red on suites built around a compromise we forgot was a compromise. I dig into the balance sheets and AI strategies of Coupa, Jaggaer, SAP Ariba, and Ivalua. No holds barred, no economic interest, no apologies. Dor Israeli joins mid-episode for a check on how AI employees change the data picture entirely. No champagne. No cava either.