AOP PodcastMarket IntelligenceNegotiations

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

By July 24, 2017 January 4th, 2019 No Comments

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:

Philip Ideson

About Philip Ideson

Philip founded Art of Procurement in 2015 as a way to empower procurement professionals at all levels to deliver change with confidence; whether from the inspiration of the popular weekly podcast that he hosts, or with targeted solution offerings that guide clients on their journey to transform the impact of procurement.