Tropic reposted this
Vice President & Head of Procurement | Spend Management Enthusiast | Speaker | Advisor | Professor. On a mission to change the perception of Procurement. In tech and beyond.
In my experience, the most common reasons people try to go around procurement: 1️⃣ Lack of trust 2️⃣ Lack of understanding. This may come as a shock, but in my experience, a robust, comprehensive, thorough sourcing policy that rivals the US tax code both in length and complexity is not the answer. Besides being an occasional reference guide for a select few, most won’t read it. Strong communication and training certainly go a long way. But here is what I try to do: Step 1: Build a relationship (this helps strengthen trust). Step 2: Deliver a positive user experience that results in true value to the stakeholder. (This helps them see first hand). I have found that when stakeholders (and suppliers) experience strong procurement, they want more of it. It saves them time. It gives them options. It empowers them with data to make decisions. It helps them achieve their goals. And that is what will have them coming back for more.
Michael Shields I completely agree that trust and understanding are at the core of stakeholder engagement with procurement. Building those relationships and delivering tangible value are essential steps. To add to your perspective, I’ve found that clear guidance and organizational alignment also play a critical role in fostering collaboration. When leadership provides consistent direction and ensures that processes are well-defined and adhered to, it reinforces trust and simplifies the procurement journey for stakeholders. A transparent process, coupled with strong communication, not only empowers stakeholders but also aligns everyone toward shared goals. In my experience, this alignment creates an environment where procurement isn’t seen as a hurdle but as a partner in success.
And don't blame the customer when they say "That doesn't make sense". If you implement a policy, it is your job to ensure that it makes sense not just to you, but to those who are affected by the policy. Far too often I have heard Procurement resist customer feedback because "they just don't understand". If the customer does not understand, you have not done your job well.
I have worked hard to change the dynamic with my stakeholders at the manufacturing plants I support. My efforts have yielded positive results in changing their perception of me from a buyer that is needed in the PO approval process to a trusted business advisor that they include on the front end of our CapEx projects. This change has helped because I get a chance to better understand the SOW and I can work with my suppliers to capture cost savings by reviewing/modifying the specifications.
I completely agree. I recall a situation in a company where, upon taking over the purchasing department, I realized that the Maintenance Department was quoting a large portion of the supplies. When I spoke with the Manager, he said, "I don't like doing it, but the current purchasing team can't keep up." We made an agreement that I would reinforce and train the team, and once completed, we would work on savings. In 5 months, the team was strengthened, and in the first year, we achieved $1.5 million in savings.
It's so true. I've found that no one reads the policy, the people that go around procurement are the ones that think it is just a rubber stamp that should be placed on their order, and that they really don't understand the value. The relationships are what is rewarding and the best path to success and value.
Michael Shields the challenge always is - as people do "procurement" in their own everyday (non-work) lives they think they can, and do a good job of it, in their work-lives too.
Pitching in that the single most effective way to get your stakeholders to trust you: respect their time. If you're having a meeting with a supplier that would virtually lack any and all relevance to them or their responsibilities... leave them off! If you respect their time and get favorable outcomes, they'll love you.
Fully agree with this! Being reliable and helping stakeholders solve their procurement issues will go a long way to create buy in with Procurement. A carrot is always better than a stick..
Owner/consultant @ Proactive Procurement | Procurement delivers value | Team builder | Process optimizer | Source-to-Pay
1wMy experience is that it is not just a lack of trust, but also the fact that people love to find suppliers themselves (“I know this guy, he’s great, if I call him at night he’ll come right over..” “But why do you need him at night?” “Eeh….”), love to negotiate (but mostly only on price) and have a misconception that Procurement will never understand their demands… only because we sometimes challenge them. So yes, build trust! But also, demand to be trusted.