Procurement and supply management professionals recognize the need to function more efficiently and more effectively in an increasingly complex business environment. This is especially true in these challenging economic times, and requires a truly STRATEGIC approach to what was traditionally a transactional procurement function. Truly progressive organizations worldwide have been able to transition from a transactional role to become a strategic instrument of the organization, which reduces costs, while increasing both efficiency and effectiveness. Such a transition must also address the critical aspects of supply chain risk identification and management. These organizations have also recognized that achieving truly world class operations requires the strategic capabilities created by both strategic sourcing and active management of supply chain risk.