Month: July 2017
While the word innovation means different things to different organizations, companies are unanimous in agreement that, today, innovation needs to become the bedrock of the business – whether it’s a new piece of technology, a more efficient way of doing things, or simply a new approach that tackles an age-old problem.
Businesses are increasingly turning to suppliers to provide the tools to make new innovations a reality and, although several different functions interact with suppliers, it is procurement that is typically responsible for bringing them on board and integrating them into the business.
According to research from Procurement Leaders, on average, two-thirds of a company’s revenue are spent with suppliers. With such a significant proportion of cash being invested into suppliers, it makes sense to make the most of this investment by forming closer, more collaborative, working relationships with them. After all, if the end game is achieving innovation across every area of the business, the old adage ‘two heads are better than one’ means that collaboration between procurement and suppliers will help drive efficiencies and lead to better outcomes for all.
22% of CPOs intend to direct more resources towards supplier relationship management (SRM) in 2017, according to Procurement Leaders’ most recent Trend Report, highlighting the importance that CPOs are placing on improving the relationships their functions have with suppliers.
A fully engaged supply base is vital to a procurement function. It can help deliver new products that help grab market share from competitors, improve manufacturing processes or drive sustainable performance.Read More »
A good negotiator needs not just a repertoire of strategies, tactics and techniques, but also the experience to know when and how to deploy them.
One strategy – the concession strategy – lies at the heart of every negotiation as it determines how you can manage the way a negotiation plays out. Yet the concept and the actual reality of putting it into practice seem to be difficult to match up.
It is a moveable feast of what we can and cannot accept, combined with how we manage what we need to negotiate, and a planned means, that helps us reach the end goal in a way that maximises our success. In my experience, the concession strategy is the least planned-for and most-avoided component of negotiation preparation.
As a procurement leader, it is important to ask the following questions: What do I know about our suppliers? What should I know that I don’t?
Most businesses can tell you anything you want to know about their cust
omers. Not only do companies know who their customers are, organisations also know their clients’ wants and needs, purchasing patterns, risks and priorities, contract terms and committed service levels. Businesses are expected to know what a customer pays versus what they are supposed to pay, as well as which type of customer will pay more for specific items and those that will pay less. To put it simply, they understand the detailed financial implications of a change in any customer relationship.