This content was published on the Determine blog on March 5, 2019
When we learn to collaborate with others, trading joint efforts for shared benefits, we not only increase our potential for value creation, we also open the door to new types of value. Nothing worth having is easy to get, and a state of effective collaboration is no exception. In fact, achieving a state of mutually received advantage requires procurement to completely alter some of the ways we’ve worked – and thought – in the past.
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“You don’t find customers for your products. You find products for your customers.”
Seasoned procurement professionals understand the importance of cultural alignment in supplier relationship management - regardless of the category of spend in question. But with so much going on in procurement these days, and in competitive enterprises in general, it can be hard to define the elements of culture that should be used to determine that alignment.
There is one cultural dynamic that will resonate with most procurement organizations: the need for change, or as we frequently put it, transformation. Any organization committed to change, whether they intend to alter current practices and capabilities or add new ones, must partner with organizations that have the same objective. But change for the sake of change gets us nowhere. Understanding why we are making or requesting changes is what makes our decision strategic and optimizes our results.
This content was posted on the Determine blog on February 26, 2019
In Part 1 of this series we looked at how procurement can expand our impact on risk by getting involved earlier in the process and by staying involved longer. In Part 2 we’re going to compare and contrast internal and external sources of risk and how to keep them in check.
It is critical that procurement not think of risk mitigation activities as separate from our other spend management responsibilities. Sourcing, spend analysis, supplier management and contract management should all reflect a keen awareness of risk, especially once procurement has demonstrated the ability to carry these processes out to good effect under internally driven objectives.
Each category of spend should be evaluated for the risk profile it bears both inside and outside of the company. When procurement recognizes that the enterprise is part of a much larger system of players and forces, and accepts the role we can play in managing those dynamics, our work becomes far more complex. Fortunately, this complexity comes with a corresponding increase in potential for value creation and competitive advantage.
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