Sourcing VS Buying – Putting it in Perspective – Part 2 of 5

June 5th, 2012

Do you source services and goods for your company the same way you shop for your family?

Today’s post is by Mark Davis; Sr. Vice President of Operations and CTO at SafeSourcing.

There have been studies and surveys conducted that show how many procurement professionals say they like their jobs because they get to “shop” for their companies.  In its most basic form this is correct, however the differences between running a multi-billion dollar corporation and what it takes to run a normal household soon show that there is a lot more to procuring for a company than just shopping. 

In today’s blog we will be looking at how loyalty to certain products can be seen as a hurdle to purchasing and how it doesn’t have to keep you from looking at other comparable products.

Loyalty to the product

In my home there are certain products we buy even though comparable and cheaper products are available.  Because we aren’t lottery winners, there are not too many of those products and even then we still try and find the best prices for those products when possible.  We are loyal to those products and we will not change without a compelling reason.

In the procurement world, hesitation to strategic sourcing practices happens for similar reasons and should be handled in similar way.  When a customer tells us they want to buy computers but only from Dell, we tell them we will get the best source of Dell computers for them but that we would also like bring in proposals from other manufacturers for them to review in the process.  Without taking this approach, they can never know that what they have always used is still the best product or service out there.  If it ends up that it still is, then at least they still have the best source to choose from for that product.

Tomorrow we will look at when price is seen as they only objective to buying something.

For more information about how we can assist with sourcing projects for your company, please contact a SafeSourcing Customer Service Representative.  

We look forward to your comments.

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