111: Procurement Math & More: 10 Sins of Day-to-Day Procurement

I will be in Las Vegas this week at the ISM Indirect Conference, and with Las Vegas also known as Sin City, I thought it would be fun to look back at some old Art of Procurement episodes and come up with a list of 10 sins of procurement!

Now, frankly, there are a lot more than 10! However, I had to stop somewhere! These are inspired by my own experiences, and the guests that we have had on the show. I kept them to what I think are our day to day dealings with suppliers and stakeholders rather than looking at it from an organizational design perspective.

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“How many times did you invite suppliers that you did not award the business to, and then inform them about it with a quick voicemail, or a standard 1 line email, or worse still not at all. This is the equivalent of a recruiter never getting back to you after an interview, and we know how frustrating that is, after the effort that goes into the interview process, and the decisions that you have put on hold waiting for an answer.”

In this episode, you will learn:

  • Why I believe the following are ten procurement sins:
    • Lack of alignment
    • Price over cost and value
    • Not providing feedback to down selected suppliers
    • Not telling suppliers they are failing until you are past the point of no return
    • Being a policeman, not a facilitator
    • Thinking our job is done when the contract is signed
    • Assessing risk based only on a financial health check
    • Not helping suppliers resolve payment issues
    • Using power dynamics and game theory to get what you want
    • Procurement math

Links and Resources:

Thanks for Listening!

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.