Market Intelligence Negotiations

145: Negotiate Win-Win Deals with Supplier Specific Sourcing Intelligence (3SI) w/ Michael Shaw

Today I am joined by Michael Shaw.  Michael is well known through the Sourcing industry, particularly here in the US, he is currently chairperson of the American Council of Sourcing and Procurement Executives.

The heart of today’s conversation revolves around a concept called 3SI – Supplier Specific Sourcing Intelligence. The premise is that a number of companies struggle to access the supplier market intelligence that they need to really enable them to build win-win relationships with key suppliers.  We tend to focus on win-lose, or leverage when it comes to using market intelligence.  Following the principles of 3SI provides the ability to craft deals with key partners – and Michael provides an example of a Microsoft licensing deal – that provide better results than a typical negotiation would achieve.

“3SI subject matter expertise data and so forth comes from the seller’s side of the table, essentially from the suppliers themselves. So how does that happen? What the 3SI firms do they target and hire individuals from very specific roles at the suppliers themselves. These are people, individuals who’ve worked in the area where business operations and finance comes together.” – Michael Shaw, American Council of Sourcing and Procurement Executives

In this episode, you will learn:

  • What is the American Association of Sourcing & Procurement Executives?
  • What are the key challenges that Michael hears from executives within the association?
  • Why procurement leaders need to ensure they are skating where the puck is going
  • An introduction to the concept of 3SI
  • What are the sources of data that underpin 3SI
  • What are the technologies that Michael is keeping a keen eye on in terms of potential impact to procurement

Links and Resources:

About the author

Philip Ideson

Philip Ideson is passionate about the role that procurement professionals and leaders can plan in creating competitive advantage for their organizations in ways that go beyond the traditional value proposition.

Philip founded Art of Procurement as a way for the procurement community to learn from each other, increasing the impact they have on their organizations. In 2017, he co-founded Palambridge, a virtual platform of procurement experts, technology, and intelligence. Palambridge provides a broad range of flexible procurement solutions, available on-demand.

Prior to Art of Procurement and Palambridge, Philip enjoyed a career that spanned the procurement value chain, working across three continents for organizations such as Accenture, Procurian, Ally Financial, Pfizer and Ford Motor Company.