Buyers Meeting Point procurement by Kelly Barner

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Displacing Incumbent Suppliers

Displacing Incumbent Suppliers

You’ve invested a lot of time and money. You may even have staked your reputation on backing a supplier. So when is it time to replace them?

At a recent executive meeting, the subject of incumbent suppliers arose. The conversation reflected on both the personal and business investment that can occur when a supplier is selected, from a business stakeholder and a procurement perspective.

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The Contract as Catalyst for Cultural Change in Procurement

The Contract as Catalyst for Cultural Change in Procurement

Scenario 1: The supplier contacts you in writing to state they have submitted the wrong pricing in the bid…what is your first response?

 - Tough luck you submitted it

 - That’s typical of suppliers, always trying to trick you

  - Expect the price is going to increase

 - Interested to see if they are submitting a lower price

Scenario 2: The supplier approaches you and states they think they have a solution to deliver the contract more efficiently...what is your first feeling?

 - They are looking to upsell

  - I don’t believe them

  - They are trying to make me look bad

  - Want to discuss in a supportive and engaging manner

Scenario 3: The business reduces its requirements 2% in the contract and understandably do not want to pay for what is not required. Do you;

 - Tell the supplier to “suck it up” and not re-negotiate the contract

 - Re-negotiate the contract to ensure they are fairly compensated

 

Unfortunately we all know the responses because it is an attitude that is the default towards suppliers; confrontation & mistrust. For many within procurement it is a justified attitude because in the past any leniency has been abused by suppliers.

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