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, and in our latest conversation, we took the opportunity to discuss the Vested model and how procurement (after long delay) is finally embracing this 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:
- Subscribe to the Art of Procurement podcast.
- Kate Vitasek on LinkedIn
- Vested Way
- Vested Library of Case Studies and Whitepapers
- AOP Episode 074: The Art, Science and Practice of Crafting Strategic Supplier Relationships, w/ Kate Vitasek
- AOP Episode 091: Harness the Power of Sourcing Business Models w/ Kate Vitasek