Most recent posts
…we are not good at managing and measuring the effectiveness of our Source-2-Contract (S2C) process. Which is critical when it come to identifying savings for it is during this upstream contracting process, in contrast to the downstream purchase process, that we have the most opportunity to negotiate value.
While we spend most of our time managing external partners, we can easily overlook that our mandate is intrinsically Stakeholder Centric. But what, you may be asking, is Stakeholder Centricity?
Almost every major evolved enterprise procurement team since the 1970s has something called a “Three Bids in a Buy Policy” which states, “If you're going to spend more than a certain amount of money, you have to include at least three bidders on the actual bid”.
Everyone ubiquitously cites 3% to 5% as your savings target but I believe that 3% to 5% savings number is a fallacy. Why am I calling that a fallacy? I believe it could be 2-3 times bigger, but you've got to focus on some things differently.
Part 1 of this series looks at how not knowing means we never even realize we weren’t sitting at the table, or if we did, we got invited way too late.
We get what looks like the largest savings deal in history, one of the biggest in the medical devices sector at that time. It was about $100 million over four years.
…overcoming the limitations of static org designs based on category spend to achieve an agile, dynamically evolving, work allocation model. Historically, we formed our teams on backward looking data based on category spend, supplier complexity and business structure. We might shuffle team based on changes in these factors, but such changes are inherently reactive…