Collaboration Value Beyond Savings

163: Procurement Takes the Leap and Embraces ‘Vested’ w/ Kate Vitasek

My guest today is Kate Vitasek, a member of the graduate faculty in executive education at the University of Tennessee, and the creator of the Vested model. Kate and I have recorded several podcasts together, but in this case we connected in person at the SIG Fall Summit in Carlsbad, California. We took that opportunity to discuss the Vested model and how procurement (after long delay) is embracing the mindset.

We started our conversation by getting caught up on what has transpired in the world of Vested since the last podcast.

“A true desired outcome is the future. It’s a desired outcome. So, how do you buy the future? How do you buy innovation? You can’t write a spec for that. We really have to bring in the suppliers as experts to help co-create during that bidding process. – Kate Vitasek

Highlights from the Show Include:

  • Why procurement and suppliers have to be of the same mindset to have a Vested relationship.
  • The difference between native Vested arrangements and ones that ‘flip’ from conventional to Vested.
  • How the Canadian government has incorporated the Vested model into their bidding process.
  • The advantages of not drawing out the supplier evaluation and selection process.
  • Why a failure to incorporate cultural fit may be the fatal flaw of the RFP process.
  • Outcome-driven relationships must be built on pricing models, not price.

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.