Podcast: Defining And Delivering On Supplier Development
Whether you call it supplier performance management or supplier relationship management, procurement has always understood that we need supply partners at their best for us to realize the maximum ROI from each contract. Usually, however, that boils down to a meeting where we point out where they could be doing better or ask a bunch of questions that imply the same thing and send them on their way to figure out how they should improve. It basically amounts to procurement making a wish list and throwing it over the wall. In this week’s podcast, Amanda Prochaska and Jonathan Townsley explain how procurement can meaningfully and sustainably change the way we manage our suppliers.
“Bullies are a pain in the ass, but we must learn to deal with them.” – Dana Small. If that’s not a tried and true piece of advice, I don’t know what is. Like death and taxes, bullies are just part of life. If you could use some insight into how to deal with bullies of all types, whether in negotiation or in general, read the rest of Dana’s guest post on Negotiations Ninja.
+ This week in 2017: Episode 164: Black Belt Procurement: The Power Of Maintained Focus W/ Lawrence Kane
What We’re Reading, Watching & Listening To:
+ According to research from MHI and Deloitte, 65% of professional view hiring as one of the top challenges affecting the supply chain. Megan Ray Nichols, writing for ATSC blog, recently provided some advice for how to close the gap. Sure, you’d expect her to include increased investment in learning and development programs, but have you considered “reverse mentoring” or internal PR? There are as many ways to close the gap as there are reasons for it.
+ “The latest research from The Hackett Group reveals that procurement teams optimising their technology adoption will be 68% more productive.” While that is great news, as a recent article on PASA points out, just over half of procurement organizations have even STARTED digitizing and automating their processes. Looks like we have our work cut out for us if we want to benefit in time for #Procurement2025.
+ For anyone who buys steel directly or works with suppliers that consume a lot of steel, the carbon footprint associated with production is a huge concern. Nucor is opening a new plant in Missouri that may finally have the answer – or part of the answer – to that problem. Their new ‘micromill’ will be powered entirely by wind energy, changing both the cost to operate the plant and its environmental impact.
+ Research: 99% Of Tender Decisions Could Be Challenged Based On Pricing (Acquire)
+ Low Hanging Fruit & The Snowball Effect in Digital Procurement Transformations (Buyers Meeting Point)
+ Procurement gets smart, adds greater value over the next five years (Supply Chain Quarterly)
+ Aligning Procurement to Serve and Empower the Business (Joe Payne for Determine)
+ Automated Sourcing is Becoming a Reality (Geraint John on LinkedIn)
Identify one place or situation where you are currently “making a wish list and throwing it over the wall” as Amanda suggests in this week’s podcast. Make an actual list and bring it to the person, company or team it relates to. Set up a meeting. Share your list and listen carefully to theirs. Agree to a list of action steps – to be split among the group.
One More Thing – AOP Mastermind
If you can remember all the way back to last summer, you may remember the launch of AOP Mastermind, a game-changing way for procurement professionals at all levels to develop the strategies, tactics, and commercial skills they need to elevate their impact – without leaving the office. Well, innovative products sometimes come with a target on their backs. What happened? Read Philip Ideson’s recent post to find out and to discover what is happening next.