A Foundation of Risk: Supply Managements Other Pillar for Success A Foundation of Risk: Supply Managements Other Pillar for Success – The foundation for modern supply management strategy was built upon Peter Kraljic’s matrix, “portfolio analysis” model. Kraljic’s matrix added ‘risk’ to the well used Pareto Model and provided the foundation on which many procurement board presentations, organisational designs … Read More
Network Capable’ Buyers Needed:
Network Capable Buyers Needed: Network Capable Buyers Needed: “Is there a cause-and-effect relationship between the level of supply management networking and the performance of the supply chain—and ultimately the business”? 1. Key notable points from the report: Supply management’s ability to prove its strategic relevance and impact on corporate performance depends on its degree of integration. However, other functions … Read More
Negotiation: Managing the “Chumpion” Syndrome
The “chumpion” is a name give by sales people to the person(s) on the inside of the buyers organization that sales people befriend in order to reach out to his or her peers, dependents and superiors, to secure allies that have the ability to influence, move and marginalize procurement. The “chumpion” therefore, is at the heart of managing “back door … Read More
Beyond Cost Savings – Reprise
In an earlier post, I talked about the need for procurement leaders to move beyond cost savings. On my travels, it seems that many procurement leaders are still struggling to get their message across. So, if procurement cannot define its value then why should it be taken seriously by anyone else? To close the gap between procurement and the strategic … Read More
Is your procurement team ready to lead?
Having the right people in Purchasing is a must to delivering procurements promised strategic contribution. So try to answer the following questions for your organization: Have you developed a Culture where people are deeply aware of and have internalized the Mission, Vision and Core Values needed to execute the Purchasing and Business Strategy? How well prepared and equipped to carry … Read More
The Greatest Challenge is Internal: Stakeholder Relationships
The Greatest Challenge is Internal: Stakeholder Relationship’s Procurement is often perceived as an EXTERNAL facing function. After all procurement negotiates with suppliers and works with them to reduce cost and improve efficiencies doesn’t it? Well this may be true in part, but procurement’s ability to achieve its objectives is strongly impacted by the strength and quality of its INTERNAL relationships … Read More
7 deadly sins of procurement:
CPO’s offten operate in difficult challenging environments. So we produced a list of the sins to avoid: 1. No strategic clarity A strong business case, driven by a clear set of objectives owned by the key senior stakeholders, should be an essential pre-condition for any supply management leader. 2. Lack of sustained leadership at senior management level Supply management fails … Read More
Procurement: 12 Steps to avoid becoming irrelevant
Procurement: 12 Steps to avoid becoming irrelevant Procurement: 12 Steps to avoid becoming irrelevant – Supply Management needs to demonstrate execution excellence and add value beyond traditional cost savings or become irrelevant. To do this clearly requires alignment with the business goals and objectives and the support of the senior management team. Here are 12 suggested steps supply management can … Read More