A few years ago I was at the meat department at my local grocery store. I wanted some special steaks to for a dinner party. I spotted them in the case. They looked incredible and I could already taste it coming off the grill. The meat manager said “Wait a minute, I have some fresh ones right here.” He stepped back 10 feet and pulled new ones off the tray. It did not take much and surely made me feel very special.
We have just completed a series of articles and blogs on Supplier Performance Management. There are many components to a successful program. It is not just about scorecards!
A few years ago we did not have a technology tool to help track sourcing initiatives for 60+ customers. We utilized an excel spreadsheet with a tab for each customer all linked to a summary tab. There were 8 of us updating it from several remote locations. The sheet got corrupted, links got broken and it was an overall nightmare. Sound familiar?
I know when I took a test in school or when I have a test at the doctor’s, I am anxious for the results. It certainly would be frustrating if you never got the results back.As much as you may not want to hear it, it is better to know than to be kept in the dark.
In this Procurement on YouTube post, we will hear from Mikkel Larsen, Strategic Programme Executive at Rolls Royce. He recently gave a presentation at ProcureCon on ‘Focusing on the big wins and sustainable outcomes: using demand and specification management as the key tools in meeting tough savings targets’. When he talks about sustainability, he means lasting results through meaningful change versus environmental sustainability. In this clip, he describes the importance of reducing costs through demand and specifications as opposed to just consolidating volume for pricing leverage, bringing suppliers and internal stakeholders actively into the process to collaborate on a meaningful solution.
The world is changing.
Today’s eSourcing Wiki-Wednesday topic is Aligning SPM to your Firm's Goals.
The esourcing wiki articles are focusing on Supplier Management. With good reason – it is becoming more and more important to make sure this activity is part of the process with your procurement team.
This article from HRteam.com makes the point of how things have changed. Individuals are no longer just managing an internal team but often very complex external team members as well. They could be suppliers or outsourced functions being performed by service providers.
This discussion focuses on FAQ’s but more importantly what skills do your associates need in order to perform this function well. Do they need training and how do they get that? Here are some common concerns for your team:
- How do I get share of mind? We are not their only customers.
- How do I make sure that they deliver against the standards that are agreed?
- What happens if they do not perform against the KPIs? How do I escalate the issue?
- We do not want to get to the point of waving a piece of paper, shouting "breach of contract"
- How much time do I need to spend measuring their performance?
- How do I make supplier reviews an effective forum?
- How much time do I invest in developing the relationship?
- Do I want a supplier or a partner relationship?
- They are critical to our business, who has got the greatest leverage?
The message here is to make sure your staff has the proper tools in the toolkit to build the relationship to become a true collaborative partnership.
Have you found any training materials that are helpful for Supplier Management? What was the most useful tool and what would you recommend?
The reality of today’s 24/7 highly interconnected professional environment is that work follows us home whether we like it or not. We get emails during dinner, invites at the grocery store, phone calls during our kids’ hockey practice and text messages while we’re trying to get from one place to the next. Even when we are successful in the effort to have some kind of personal life away from the pressures of the office, we know they are waiting for us, just across the room, on that addictive little device.
In this week’s Procurement on YouTube post, we are going to look at one source of supply risk and that is resource scarcity. As procurement professionals, we pride ourselves for our ability to buy quality goods and services at an efficient price. But what if the materials we need to buy are not available? In this video, Edmond Cunningham, a member of PA Consulting Group, gives a brief overview of the approaches companies make take when faced with resource scarcity.
We have some active discussions in the Buyers Meeting Point Group on LinkedIn, most recently, an exchange about what makes a good buyer. Ironically, it was asked by someone who is not a buyer themselves.