Month: September 2017
In today’s business world, there’s a desire to have your good suppliers stay in business. This desire often tempers how aggressive procurement professionals are when negotiating with certain suppliers.
Most suppliers could remain solvent even if they anointed your organization the one customer they no longer charge. But some suppliers’ viability could be threatened by offering their biggest customer an unprofitable price structure.
In procurement, you don’t always know if the deal you negotiate for might be fiscally unhealthy for your supplier. So, they question is: how hard should you push certain suppliers?
People are often surprised, and a little intimidated, when they learn that my research expertise is in negotiations. They remark, “but you are so personable … transparent… straightforward.” And I think, “It’s too bad that’s a surprise. . .”
This is probably because most people think of negotiators, and by extension negotiations, as showy and cut-throat, a game where one side wins and the other loses. So it’s not surprising that many people dread having to negotiate, whether for a car, a house, a new job or a business.
Ah, after summer breaks. It’s that glorious time when kids go back to school. Time for them to refocus on improving skills related to the “three R’s” of education: Reading, ‘Riting, and ‘Rithmetic.
It might also be a good time to pay attention to the reading, writing, and arithmetic involved in your procurement. Here are ideas for what you can do in each of these areas right now in this back-to-school season.
By 2020, millennials, or Generation Y, will make up over half of the global workforce. Attracting the best and brightest of this group is key to procurement’s future success, yet many of this generation still don’t know what procurement is or what it does, making it more challenging to bring those people in.
Procurement must begin to change its thinking if it wants this to change.
“Not many people go to university saying they want to be in procurement. I didn’t know anything about it when I was at university and I fell into it while I was looking for jobs. This is because of a lack of awareness,” says Martin Smith, senior manager at recruitment company Procurement Heads.
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