Think of the handful of supplier agreements that you have that are fundamental to your business operations and strategy. How many of your most material supplier relationships are based on leverage, power dynamics and a zero sum game?
Today’s guest is Kate Vitasek, Founder of the Vested business methodology. Kate provides real world examples as I ask how we, as procurement professionals, can put these rules in to practice and create relationships based on the notion of shared value. The result: a supply based that enables our stakeholders to “win” at what it is that they do to contribute to the competitive advantage of our organizations.
“When you say you want innovation, when you say you want strategic partners these deals have to be crafted differently than you’re buying a pen, or a widget. One of the things that we do is we shift the thinking from price to a pricing model, and that pricing model should have incentives. So when the buyer wins the supplier wins. You win together, you lose together.”
In this episode, you will learn:
- Why Kate made the leap from the corporate world to academia.
- The origin story behind the Vested movement.
- Why should an organization care about building stronger, more collaborative supplier relationships
- What are the 5 rules that underpin the Vested methodology and that are critical to building trust based relationships.
- How you can build supplier contracts that incentivize both parties to focus on outcomes and not activities?
- Why governance needs to be about removing roadblocks and not pointing fingers
- How can you determine which suppliers to focus on building Vested relationships with?
Links and Resources:
- Subscribe to The Art of Procurement
- Kate Vitasek profile on LinkedIn and the University of Tennessee website.
- Business Model Mapping Toolkit
- Free online Vested Orientation course
- 6-day Art of Procurement email course adapted from the Vested methodology: How to Craft Win-Win Relationships with your Most Strategic Supplier Partners.
Thanks for Listening!