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After reading ‘The Procurement Game Plan’ by Charles Dominick and Soheila Lunney, we were fortunate to have the opportunity to speak with both authors, both about the book and their careers in procurement. 

procurementgameplanBuyers Meeting Point: You both come from different backgrounds, and that diversity gives ‘The Procurement Game Plan’ much of its strength as a learning tool. How does this book fit into each of your personal procurement career journeys?

Charles Dominick: The material covered in the book is based on my personal experiences as a practitioner – both ideas that succeeded and mistakes I learned from. In looking back, I found that overcoming challenges and correcting mistakes was more valuable from a learning perspective than my successes. When I was a practitioner, I did not think about documenting my experiences so I could later use them as a basis for teaching others. Many of the lessons I incorporated into the book did not seem significant to me at the time, but become powerful principles that could be put into training.

Soheila Lunney: As a teenager, my plan for future was not to go into procurement (I even did not know anything about purchasing/procurement function); my background is in science (Ph.D. in Chemistry). While working at Bayer, I was given the opportunity to enter three-year rotational assignments in different disciplines – including procurement/supply chain. It fit with my personality and it is a discipline that never gets boring. As a member of strategic sourcing teams, I was able to use my background in chemistry when buying chemical raw materials, and the more I learned, the more I liked the discipline.

As a function, supply management is getting more attention. Both training and teaching are needed, but most of the existing books/materials are very theoretical and not easy to read.  The goal of The Procurement Game Plan was to focus on best practices and how to implement them. Writing the book was a rewarding, collaborative process. Right from the beginning, Charles and I found that we shared a vision for what the book should contain – we started by independently making a list of topics that should be in our book. When we compared our lists, 95% of the topics matched.

Now that the book is out, I often hear from past contacts and colleagues. In most cases, they are appreciative for having a book that is easy to read. The analogies and contrasts to sports bring in a new twist and may help a younger audience to see the value of the book. I have been conducting half and full day seminars about The Procurement Game Plan, spreading the principles of the book and receiving very positive feedback.

 

BMP: We like the ‘entrepreneurial’ approach to procurement leadership that you describe in Chapter 2: Setting a Supply Management Strategy. Do you feel that writing a business plan is advantageous for procurement groups of all sizes and points in their lifecycle, or is it best suited to smaller groups just starting out?

Soheila Lunney: I believe preparing a procurement business plan is a great practice for organizations of all sizes.  It keeps everyone focused.  Obviously, the leaders of the procurement departments need to review their business plan every year prior to the start of the fiscal year to make the necessary adjustments to their business plan due to various reasons (e.g. regulatory changes, changes in company’s strategic direction, mergers and acquisitions,…).

 

BMP: In the chapter on Social Responsibility in Procurement, you make the following statement, “Because procurement is a decision-making department, it has the opportunity to positively contribute to an organization’s social responsibility initiatives” (p. 53). Although your point relative to CSR is well taken, the statement is empowering, and may change the way many procurement departments look at their relative internal influence. What can you say about the general confidence you see in procurement groups regarding their internal relationships with operations, accounting and accounts payable (for instance)?

Charles Dominick: How procurement is perceived internally varies from company to company. Some departments are still just waiting for requisition forms to arrive and others have taken on more proactive responsibilities. Procurement is a decision-making organization – or at least it should be. If we want to establish ourselves, we have to continually improve on what we do, what we can bring to the table and what we offer toward the decisions that need to be made. If we play a strong contributing role in the decision making process, we should be credited with helping achieve the results, but we still have to sell ourselves to gain respect. We have to step up and take a leadership role in the project teams we are a part of. Cross-functional teams often lack both leadership and structure, and if procurement can provide those things we will build a solid reputation over time.

Soheila Lunney: Since late 90’s when Strategic Sourcing process started gaining popularity, we see more and more organizations using cross-functional teams to address various areas of buy.  Cross-functional teams have provided a platform for procurement professionals to work in collaboration with their counterparts. As a result, procurement function is much more respected, counterparts from various groups have a better appreciation for procurement’s role, and are working closely with procurement more than ever before.

 

BMP: In your section on ‘reverse differentiation’ you describe the ways buying organizations can make themselves a customer of choice by making fast decisions, paying on time, or offering testimonials. What similar non-price concessions can procurement make in advance of finalizing a contract to improve their negotiating position with a supplier?

Soheila Lunney: Other non-price concessions can include: 

1 – Offering to be a Reference for the supplier

2 – Having supplier’s logo on the list of preferred suppliers on your company web-site

3 – Extending your supplier’s pricing to your employees for their personal purchases

 

BMP: You and Charles met through your local ISM affiliate, and ‘The Procurement Game Plan’ is a success story for the association. What place do you feel that traditional associations have in today’s social media environment (LinkedIn, Facebook, Twitter, etc.)?

Soheila Lunney: Opportunities to network are everywhere and I try to learn from all of them. I don’t believe that these different forums are in competition with each other. If I make a connection, I intend to keep it long term. If someone reaches out to me with a question and I don’t have the answer, I research to find it. In that way we can all learn and grow together. You tend to get as much out of these opportunities as you put in – either a little or a lot. There are many avenues for us to be better at what we do, including many free resources – like the ones offered by the Next Level Purchasing Association. Procurement has many obstacles to overcome, and as long as companies continue to spend far more on sales training than procurement training, we need to work together as peers.

 

BMP: Many writers are also readers. What books other than your own would you recommend?

Charles Dominick: I enjoyed ‘Managing Indirect Spend’ by Joe Payne and William Dorn because it is written in a real world way, something that is sorely missing in procurement books.

Soheila Lunney: One of my favorite books is ‘The Supply Chain Manager's Problem Solver - Maximizing the Value of Collaboration and Technology’ by Charles C. Poirier.