16 Do’s and Don’ts of Strategic Sourcing
In the age of Procurement 4.0, we are bombed with all the news about technology changing our daily work, new concepts in management models, volatile economy, globalization and increasing number of suppliers.
Thus, every sourcing specialist must bear in mind the fundamental rules of strategic sourcing.
Do not see RFI as the only path and neither you shall use eSourcing and eProcurement tools as a crutch
Be multichannel, do call, expand the inquiries and don’t blame the eSourcing tools -they are made to assist, they don’t think (yet) – you do!
Do not stop looking for leverages
Finding added value, in any form, is always a great thing to do. Think of the best ways to assess it. Keep your mind open.
Do not forget to write things down
Any thoughts? Ideas? Email to be sent? Comment from the manager? RFI number? Supplier’s new solution? A company worth checking out? Memo from a colleague? Simple task from the boss? — Remember the fourth question…? You get the point.
Position yourself as an attractive partner to do business with
Two words – ethics and integrity – meet the commitments you have made to the suppliers, create a win/win approach, motivate and reward.
More effort you put in sourcing project at the start, the less sweat you will have with finishing the project – understand the objectives of a project, research the category, pay attention to longlisting.
Be the knight of savings…
No one has to be convinced that savings are the best – remember that cost may be different than money.
…but remember that value(s) comes first
Identify the Total Cost of Ownership (TCO), confront it with catalog price. Ask the supplier what value does the product/service bring to you and your company.
Don’t lose attention to details
Read carefully, don’t skim on the surface of problems/issues – be as specific as possible (but don’t over-specify).
Keep in touch
Start creating a relationship right from the first contact, don’t hesitate to call and ask, be polite and respectful. Know the etiquette and NETiquette. and finally… – answer your phone!
Be a human
Remember that on the other side of the phone/internet cable, there is a person. Be polite, be forgiving, respect their personal life. Remember that people are different, representing different cultures and values.
Be open-minded and elastic
Opportunity knocking? Welcome it. Be mindful of the possibilities, never resist the unfamiliar, bend your rules and exit the comfort zone (from time to time).
Negotiate only in the sourcing stage
Be a step ahead and finish all discussions in the sourcing stage.
Be a team-player
Integrate into/build a devoted team, motivate others, look for ideas and suggestions – participate.
Pre-evaluate, visit, and audit
Develop a perfect supplier profile and benchmark it against your longlists; visit and audit if necessary or just in case.
Drive productivity with constant communication
Decide when to be transparent, engage people internally and externally, an information has its power when it is shared information.
Make time for risk assessment and see the big picture
Looking at the bigger picture is not possible without assessing the overall risks – find time for analyzing the situation, be aware of the likely future outcomes. In the smaller picture, try to keep your legal team updated and with access to risk-marked documents.
OPTIBUY Sp. z o.o.
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