The following is the final excerpt from our White Paper “The Art of Collaborative Procurement”!
Today’s post is by Ron Southard, Chairman and CEO at SafeSourcing Inc.
The following is an excerpt from our White Paper “The Art of Collaborative Procurement”!
The concept of the whole being greater than the sum of its parts is important, but the art of the process is in defining the “why”. At least that was my intent when I began this paper. A company’s survival may depend upon mastering that art.
Some companies have shied away from new eProcurement tools and collaboration with other companies because either they don’t think their individual spend was large enough to make a difference or they don’t know how to find other companies to partner with. The old saying about the whole being greater than the sum of its parts has a role even in eProcurement, and solution providers can provide the direction required to accomplish this. That is, if it’s the right solution provider. Think about how this concept could help find savings in procurement.
- Coordinated effort leads to the benefits of scale. SafeSourcing regularly runs events where multiple customers reap the benefits of going to market with a combined larger spend.
- Working together offers different things to different companies in different proportions. All companies may not be buying the exact items as each other, but combined, the similar items give a vendor the opportunity to offer greater savings than would otherwise be viable.
- Collaborating can prevent companies from seeking different procurement solutions in the first place. The benefits of working with others may go beyond the simple numbers initially calculated.
- Collaborating in and of itself might be a new procurement strategy, but a tool and expertise are still needed to facilitate the process.
- For companies concerned that these tools are an impersonal solution, time is revealing that the internet and electronic solutions are anything but impersonal. They are different and they allow interaction in ways that were not possible before due to communication and time barriers.
Middle of the road traditional procurement practices will not work in the art of collaborative procurement. The same old same old does not work. The pace with which change occurs today requires companies to be able to turn on a dime and think outside of the box. For that, procurement leadership is required, leadership that looks at the art of the process. Leadership that creates and innovates is required for the benefit of all involved in the collaborative process based on their individual needs
If you would like to learn more about how our customers and suppliers collaborate and work together, please contact SafeSourcing.