Supply chain management is fundamentally about solving complex problems. Procurement and supply chain professionals are continuously tasked with finding new ways to optimize processes, create efficiencies, and improve performance. While much attention is placed on capturing value through cost savings and operational improvements, the ability to create value is just as critical.
Balancing Efficiency with Innovation
Many organizations rely on proven efficiency methodologies to streamline operations and improve supply chain performance. Popular frameworks include Six Sigma, Total Quality Management (TQM), Lean Manufacturing, outsourcing strategies, and digital transformation initiatives. These approaches are effective in reducing waste and enhancing productivity.
However, focusing solely on efficiency can sometimes cause teams to overlook the root of the problem or miss opportunities to design better solutions. Before forming cross-functional teams or investing in new technology, it is essential to clearly define the problem, identify who it impacts, and understand the end user’s needs.
Integrating Design Thinking in Procurement and Supply Chain
Design Thinking offers a valuable framework to guide innovation in supply chain and procurement. It is a user-centric approach that brings together three essential elements: business viability, technological feasibility, and human desirability. As Tim Brown, CEO of IDEO, defines it: “Design Thinking is a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.”
By putting users (whether internal stakeholders or external partners) at the center of the process, procurement leaders can better understand how tools, systems, and services will be used. This leads to more effective solutions and higher adoption rates across the organization.
Why Design Thinking Matters in Supply Chain Strategy
In practice, Design Thinking can help avoid common pitfalls, such as launching dashboards or procurement tools without fully considering how they’ll be used or what specific problems they solve. The process is iterative, meaning it continues to evolve until a truly effective solution is identified. This flexibility makes it well suited for today’s fast-changing supply chain environments.
As Michael Graber of Southern Growth Studio points out, “Design Thinking is a method for business growth, but the benefits go as deep for your company as they do for customers.”
The Competitive Advantage of Combining Efficiency and Innovation
When procurement teams apply Design Thinking alongside traditional efficiency tools, they achieve a more complete approach to value creation. Innovation drives new capabilities, while efficiency ensures those capabilities are scalable and cost-effective.
Design Thinking (creating value) + Efficiency Methodologies (capturing value) = Sustainable Competitive Advantage
By adopting a dual focus, on both innovation and operational excellence, supply chain leaders can unlock new growth opportunities, drive business alignment, and build more resilient procurement functions.
