In today’s fast-evolving business landscape, supply chain and strategic sourcing leaders are being challenged to rethink what success truly means. During a recent panel discussion, senior executives from PG&E and Wells Fargo shared their perspectives on how organizations within the Shared Services & Outsourcing Network (SSON) can adapt and thrive amid ongoing change. Their insights highlighted the growing importance of agility, data-driven strategies, and cross-functional alignment in shaping the future of strategic sourcing. The discussion, moderated by Sandesh Kurkal, Neo Tangent’s Head of Strategy and Transformation, explored three major themes: new success metrics for SSONs, fresh thinking around tail spend management, and the growing role of AI and data in shaping smarter supply chain strategies.

Traditional procurement metrics like cost savings still matter—but they’re no longer enough. Panelists agreed that today’s SSONs must look beyond dollars and cents to evaluate impact across multiple dimensions, including compliance, speed to execution, risk mitigation, and stakeholder experience. “We have to track the things that truly influence business continuity and customer value,” Sangram Bhosale shared. “It’s not just about hitting sourcing targets—it’s about driving enterprise outcomes.” This shift reflects broader expectations from C-level leadership, who increasingly see supply chain as a strategic lever rather than a transactional function.

The panel took a closer look at tail spend—the often-overlooked long tail of small, fragmented suppliers that create administrative complexity and compliance risk. Instead of chasing marginal savings, companies are turning their attention to streamlining, bundling, and automating this category of spend. Tail spend, the panel noted, can be a “quiet value drain.” Without strong governance and tools, it quickly grows out of control.

The promise of AI and data analytics featured prominently in the discussion. Panelists were optimistic about the future of AI in predictive spend analysis, risk detection, and decision-making—but they also warned of common pitfalls. “Technology can only take you so far,” Jovelyn Larson said. “Change management, communication, and aligning teams across the organization are what make or break these efforts.” The panel stressed the need to build a solid data foundation before scaling AI efforts—and to embed new insights into day-to-day operations.

As SSOs navigate this next chapter, the message from the panel was clear: success requires a broader definition of value, a smarter approach to tail spend, and readiness to evolve alongside new technologies. Neo Tangent’s ongoing leadership series continues to surface these critical conversations—helping supply chain and sourcing leaders’ future-proof their organizations in the face of rising complexity. Watch the full panel discussion to dive deeper into how SSOs are evolving—and to gain firsthand insights from industry leaders on redefining supply chain success in a rapidly changing world.