This is the perfect time of year for thinking big. 2017 stretches before us, completely open and full of promise. It’s also far enough away (and on the other side of the holidays) to be more of a theory than a reality. Click on the title of each webinar below to view the full description and register or visit the BMP events calendar to see what’s on tap for the rest of the month.
And… just like that… it’s October! In the shadow of The Procurement Revolution the calendar looks a little light this week. That being said, there are two interesting webinars taking place. Click on the title of each event below to view the full description and register or visit the BMP events calendar to see what’s on tap for the rest of the month.
Procurement is undergoing a transformation, moving away from process and price and towards undertaking initiatives that demonstrate value for the business. Therefore, when the opportunity arises for procurement to demonstrate its value, you would expect them to seize it in both hands… or maybe not!
We want to share with you a real life situation undertaken this month. We have removed the names of those involved to limit embarrassment; both company names are fictitious, but the scenario is real.
The principle of a North/South divide has been around for as long as mankind has organized itself into societies. It is a term often used within politics to define the ‘North of the country from the South’. It doesn’t matter if you are referening to the USA, UK, or India, the statement is still applicable. It works on the principle things may be considered different between two groups, thereby creating a barrier to collaboration.
The key to the model is achieving the right perspective. For example, we may embrace a North/South divide within our countries yet still passionate about being part of the same country. Overcoming the divide requires a common agenda, one that everyone can get behind regardless of which side of the divide they are from.
The term supplier is banded around with such ease, yet has it devalued the relationship and removed the individual, resulting in generic and stale business relationships?
The associated business activity of a supplier is simple enough: the supplier delivers goods/services to the buyer in order to fulfil a contractual requirement. However, the challenge is that the term can also be used in many other ways. For example:
It can be used as an excuse to blame poorly structured contracts. “The supplier didn’t agree”
It can be used to justify the buyer not doing something they don’t want to do “the supplier didn’t support it”
In essence the word “supplier” is used as a generic label to cover all and any activity between the buyer and their supply chain.
Society has a habit of labelling many areas of the world we live in, ranging from how one’s spouse might be identified “The wife/husband” through to labelling social, economic, political, regional, and religious groups.
When a label is used it can de-humanise the individual. Sometimes this is a deliberate approach to make it easier to talk about a wider group, however when used incorrectly it can also have a detrimental effect on how the individual identifies their value and how others evaluate their contribution.
Human relationships are behind all commercial contracts, and so de-humanising the relationship may feel like a convenient model for addressing multiple aspects but one needs to question if it will really drive the best out of the relationship.
When we look at the relationship between the buying organisation and their supply chain, we see a trend. Suppliers who are valued are rarely labelled as “the supplier” but are identified by either the company name or account team members. When this supplier is discussed internally, the ability to name the company/account team demonstrates to the business the value placed upon the relationship. This has a knock on effect within both organisations, a greater focus placed on the human relationships creates a stronger desire to accommodate and collaborate.
With more and more automation being introduced into the procurement processes, it has the capability to remove the human relationship aspect of doing business. Now more than ever one needs to focus on how labels are applied within business.
Collaboration remains an undeveloped area of business opportunity, with few organisations able to say they collaborate with their entire supply base. Collaboration can take many forms but they all require a human desire to want to engage. The level of support buying organisations can generate from their supply chain may be directly influenced by how the supply chain has been labelled.
The next time you discuss “the supplier” you may want to reflect if it is being used to truly reflect the larger community or to cover up other underlying issues. It is human nature to blame a faceless entity when convenient such as “The Business believes XXXX,” however to get the most out of others you need to respect who they are and what they bring to the relationship.
This week starts multiple weeks of ProcureCon events – in Toronto this week and in Orlando the week after that. Follow @ProcureCon on Twitter if you’re interested in the goings on. From a virtual standpoint, there are two worthwhile events taking place – see why I think so below. Click on the title of each event below to view the full description in our events calendar and to connect to their registration pages.
This week may not be as busy as last week, but the topics are as diverse as the presenters. And since so many companies ran events last week, this week’s hosts and speakers offer a fresh diversity of perspectives on procurement topics. Remember that we are in daylight savings time season, so double check the starting time of each event in its host country as well as your own. Click on the title of each event below to view the full description in our events calendar and to connect to their registration pages.
In his recent book Global Supply Chain Ecosystems, Mark Millar wrote, "…today's supply chains encompass complex webs of interdependencies, frequently spanning the globe, designed and deployed to optimize critical attributes – such as speed, agility, and resilience – that drive competitive advantage."
His point plays out on a daily basis through the contract management strategies and practices in many organizations. Because our supply chains are no longer linear or consecutive, we may be buying from and selling to the same company at the same time. This puts our organization in the role of being simultaneously both buyer and supplier.
While there is no problem with this, it does raise complexities for the procurement and sales teams if one or the other is unaware of something going on. I can honestly say I have seen this happen firsthand.
As a child at the dinner table, we were expected to try at least a bite of something. Like anyone, we often did not want to try something new. It was not comfortable and it was easier to skip it or default to what we knew we liked. There is an old commercial for Life cereal where Mikey tries it and the famous tag line – Try it, You'll Like It.
This week’s webinar notes are from an event run on September 3rd by Spend Matters EU/UK, Selectica, and IASTA. The event is available on demand here.
Once you get this classic Pink Floyd tune stuck in your head, it is likely to stay, and maybe that was the idea with this event title. Far from being a strategic sourcing solution ‘add on’ contract lifecycle management requires its own program considerations, including its impact on global supply chains, corporate strategy, and enterprise wide implementation and leadership. In other words, not allowing your next executed contract to be just another brick in the wall.
Supplier Relationship Management (Kogan Page, available Oct. 28, 2014) is the third book I have reviewed by Jonathan O’Brien, a Director and co-owner of Positive Purchasing with over 20 years experience in purchasing. As we have come to expect of O’Brien’s work, this book provides an extensive look at the metrics, relationships, and change management considerations associated with supply base collaboration.
It is true that supplier relationships, innovation, and collaboration are among the topics du jour in procurement, but O’Brien proves himself well versed in the associated opportunities and challenges.
This week’s event notes are from the September SIG Town Hall Teleconference. In this open mic event, Dawn Evans, SIG’s President and CEO, led a discussion about the metrics procurement can put in place to drive meaningful results from suppliers. These events, held monthly, are open to buy side members. SIG also welcomes first time buy-side non-members so they can experience the open nature of a SIG Town Hall Teleconference. These events are unsponsored and are never recorded in order to encourage open participation. For more information on SIG Town Halls, click here.
Buying and Selling Information, by career salesperson Michael L. Gruenberg, is a guide to help buyers of information services (think subscription-based online databases). Beyond this very specific case, Gruenberg has good advice to offer buyers and sellers of any product or service. He is a salesperson who ‘gets it’ – or understands the need for buyers and sellers to work together for their mutual benefit, and for the benefit of their organizations. In his own words, “It’s all about equal footing, momentum, and success” (xviii).
This guest post is a team effort from Source One Management Services. If you would like to comment, you can do so by posting below, contacting them on Twitter @GetSavings, or contacting them directly here.
The outlets for procurement and supply chain news have no shortage of recommendations for improved business processes, new ideas, and technologies your department should implement to “modernize” or “optimize” or any number of other “-izes”. If you have read any of Source One’s contributions – here, on other publications, or on our own blog – we make just as many recommendations.
There has been a lot of focus in the past year on Supplier Relationship Management, and rightfully so. As the efforts of Strategic Sourcing initiatives begin producing diminishing returns, SRM is heralded by most to be the next step: focusing more on delivering value to the organization and developing relationships that can produce competitive advantages in the market. However, an SRM policy is only effective if the proper suppliers are in place, which is why it is routinely classified as the next step after strategic sourcing. There is little value in curating and managing relationships with suppliers that are not firmly aligned with your organization’s strategic goals.
This week’s webinar notes are from an October 29th event hosted by Sourcing Interests Group and presented by David Jungling from Denali Sourcing Services. If you are interested in the content, but aren’t a member of SIG, Denali also recently published a whitepaper on the topic, which can be downloaded here.
Supplier Relationship Management in the Supply Chain by Stuart Emmett is accurately titled – it is in fact a book about the importance and execution of supplier relationship in the supply chain. But because so many organizations do not have SRM programs (or would benefit from being more supplier-centric) it is more importantly a book about change. In order to get different results, we must think and act differently. This is a simple enough idea, but bringing about such changes in an organization is complex enough that few of us have reached our desired level of SRM maturity.
This week’s featured webinar was presented by the Next Level Purchasing Association. Each of the three speakers gave a preview of the sessions they will presenting at NLPA’s first conference, which is being held in Pittsburgh, PA this September.
This week’s featured webinar was a Procurement Leaders Thought Leaders event on the topic of supplier relationship management. Innovation with suppliers is a critical component of competitive advantage, but in order to turn potential into performance procurement needs a plan. In this webinar, we heard from Hubwoo, BMO Harris Bankcorp, and P&G about supplier segmentation, key success factors, and achieving innovation.
The Seven Habits of Highly Effective People, first published in 1989, is a self-help book written by Stephen R. Covey. It has sold more than 25 million copies in 38 languages worldwide, and the audio version has sold 1.5 million copies, and remains one of the best selling nonfiction business books.
The approach continues to be pertinent in every day life at work and at home. Buyers Meeting Point will be reviewing each of the Seven Habits over the next few months.