Art of Procurement 849: Reinventing Direct Procurement in the Digital Age W/ Spencer Penn
"Direct materials is the most under-innovated, untouched by modern technology of any spend area." - Spencer Penn, Co-Founder and CEO, LightSource
Direct spend makes up the lion's share of the procurement budget, but all too often, it's still managed in spreadsheets and disconnected tools. Today's volatile supply market and relentless cost pressures demand more.
What is holding companies back from real transformation in direct procurement, and where do the smartest teams focus their innovation efforts?
In this AOP podcast episode, host Philip Ideson speaks with Spencer Penn, co-founder and CEO of LightSource. Drawing from his hands-on experience at Tesla and Waymo, Spencer explains why direct procurement's digital journey has lagged behind indirect, and what it takes to move from manual, reactive "firefighting" to scalable, collaborative value creation.
If you're wondering how to unite engineering, procurement, and finance to drive structural cost reduction, or how to leverage tech for more than basic automation, this episode is a must-listen.
In this episode, Spencer talks about how to:
- Make sense of why most direct procurement processes are still manual
- Learn how collaboration between procurement, engineering, and suppliers drives lasting savings
- See where legacy thinking and incentives stall change (and how to overcome it)
- Discover what tech can enable and when people are essential
- Find out why small sourcing decisions at scale become huge bottom-line wins
Links:
- Spencer Penn on LinkedIn
- Subscribe to This Week in Procurement
- Subscribe to Art of Procurement on YouTube