Procurement and supply chain professionals must be aware of and strive to improve their emotional intelligence. It has a key impact in negotiations. Soft skills are becoming more important - even in the digital age.
Running a procurement or supply chain organization poses unique leadership challenges. These organizations are constantly “fighting fires,” handling unique crises, and influencing a broad network of people - internally and externally.
The current public health crisis due to COVID-19 has impacted not only people’s lives but also businesses around the globe. The demand in most sectors has shrunk, and with supply and demand unbalanced, the price of most products has been affected. With less demand, most products have seen price decreases, but there are exceptions.
Jack Welch once noted that the only two departments that drive revenue directly to the bottom line are sales and procurement. He noted that the other departments were basically overhead. I would also include supply chain professionals in this revenue generating group.
Why do organizations continue to use high priced consultants and consulting firms instead of their own talented employees? Before I answer this, I must confess that I am an experienced consultant having worked for both small and large consulting firms.
Data analysis has an image problem. Despite the fact that data collection is priority one, regardless of how common “big data” buzzwords have gotten, and setting aside all the calls for data-centric decision making… The boots on the ground, those of us who manage this analysis daily, have a problem.
In part 1 of this series, we explained SOW management and described the common challenges currently face with it. In this post, we will describe the benefits of outsourcing SOW management to the organization as a whole and to the many individual stakeholder groups.
Talk to any procurement leader in an international company and you’ll hear some common issues being raised. The lure of technology (especially big data and AI) and dangled carrots of opportunity to digitally transform the whole procurement function are all great but hard facts are getting in the way.
Billions of dollars are spent annually on Statement of Work (SOW) projects. Yet, despite this considerable financial investment, many organizations are attempting to manage this area through overburdened internal resources and/or ill-fitting ERP, SMS or HRM systems – if they’re capturing the details of SOW spend at all.
From buyers to suppliers, everyone knows that the Request for Proposal (RFP) process is… less than ideal. At the same time, it is often central to the procurement process, so sales teams everywhere should be prepared to put their best foot forward when responding.
“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win. Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!” – President Donald Trump on Twitter, March 9, 2019.
The uncertainty surrounding Mergers and Acquisitions (M&A) can be frightening for all employees involved, but often overlooked is the potential a merger can bring for procurement to hit the “RESET” button – both with their internal procedures and with their suppliers. With common M&A buzzwords like “increasing shareholder value” and “synergies” thrown around by management, procurement is provided with an abundance of short term cost-saving opportunities.
In this post, I’ll outline the steps, tips, and strategies procurement can use to generate cost savings during M&A activity and boost that ever sought after shareholder value.