Procurement is so easy man. Just send
out your requirements to the few suppliers. And then see who is best in price,
make a PO. So simple, yeah, you got to chase that's our work anyway dear
How do you and I price them wrong? What
can we do differently? This is my own thought share. But when we read it looks
likes we know all. Yet we don't get it right, often! Because we are all in a
hurry. Driven by the process. For the sake of processing.
1. Choose Logically. And Wisely
If you do have multiple suppliers, take
time to examine each one’s pros and cons in that one context at that time and
thinking of now and long. Determine
which one can give you what you need, when you need it and for the right price.
Evaluate everything and build this into your mindset so to check when you get
bids back. Select a supplier you and your company need and will be able to work
and grow with.
2. Communicate
The easiest way to get into problems is by
lack of communication. Take the time to communicate with your suppliers and
build that you expect the same in return. Your supplier should be able to
problem-solve the issues of quality, delivery, etc for you.
3. Know their situation and know their Business very well.
While you don’t need to necessarily
understand everything but having a good knowledge of their policies, working
style, their people, their customers and markets will help us to better
understand their mannerism, position and their giveaway values. It will also
give you context to the challenges they face, which is especially important if
you work in a business with shifting priorities and deadlines that require a
great amount of flexibility. If you understand why a supplier might say “no,”
it makes it much easier to plan ahead.
4. Plan for Emergency backup always
There is every day every time emergencies
you should plan like late shipments. It's not important you have it ready because
you can't have plan B for every PO or contract.
But your mind n thoughts have to keep working on identifying levers to
fall back when something goes wrong in rare cases.
5. Talk of Rewards and Thanks as much as LD and Penalties
Whether we really give or not, do talk of
rewards in terms of more business - less demand for more discount. More because
we are used to talking of bonds, LDs, Guarantee, payment hold etc. A reward could
be even a simple “Thank You” note.
6. Accept mistakes
We are often last to admit a mistake, especially with suppliers. Accept accountability for your place in the process
by acknowledging that your decisions, delayed timing or changes in scope etc
have caused them trouble too - don't go instead on an aggressive. It puts
suppliers in defence and helps build some brownie soft points.
7. Pay On their Time
Ideally, pay on time but if that's not
possible always - try paying on their time if they request. Yes, it depends upon
finance but that's your own team. When a supplier says it's his production issue,
we just give them back to manage wholly. Same is in our side. The need to be
good bad diplomatic straight etc with finance team - that's our internal
lookout.
8. Stay Flexible
This is different than planning for
disasters or setbacks in your production schedule. Staying flexible means
adapting to everyday issues that arise. And be there for problem-solving.
To step back. Procurement professionals have to rise up in attitude, aptitude
and flexibility.
Maybe I could go on and one. But it's important for us to know what matters. And to look for the possible roles and the opportunities in our day to day working. Call for no agenda coffee meeting or now in this COVID, speak to them for no subject source finding is easy but finding the right one - and more so keeping them up with us in relationships is a specialized job. and we are responsible for that.
Hariharan Laxminarayan is a procurement professional with 25 years’ experience. He is an active member of the Chartered Institute of Procurement and Supply (CIPS), being a Chartered FCIPS, CIPS Global Congress Member and Chair at CIPS UAE - Northern Emirates. And a person I am happy to have as a friend and mentor for the past several years.
Comments
Post a Comment