Strategic Supplier Relationship Management – Do’s and Don’ts

Subscribe Here!


Shortly after I joined the Commodity/Category Management Procurement organization I was invited to attend the annual Strategic Supplier Awards event. It was all about Strategic Supplier Relationship management.

There were Executives from dozens of Suppliers in attendance. The event concluded with award recognition given to Suppliers based on their scoring and standing as being of Strategic value to the company.

Prior to joining the Procurement team I had neither understood nor appreciated the importance of Supplier Relationship management. But having seen how motivated and inspired these Suppliers were I started to understand.

But in the weeks, months and years to come I also became much more informed about the good and bad aspects of Supplier Relationship Management.

From company to company I came to develop a list of Strategic Supplier Relationship Management “Do’s” and “Don’ts”.

Continue reading “Strategic Supplier Relationship Management – Do’s and Don’ts”

Enable Spend Aggregation in Procurement!

Subscribe Here!


Aggregating your procurement spend for the purpose of delivering greater value is a sound objective.  Theoretically you should be able to generate better service, better terms and conditions, and better cost.  Therefore you should enable spend aggregation.

Yet there can be many obstacles in your way to achieving this seemingly simple goal.  Loss of control, fear of job loss, questionable benefits, and a perceived loss of margin are some of the obstacles you may run across.  We discussed these in greater detail in our post Procurement (Part 1!) – The Spend Aggregation Obstacle Course!

You may be trying to aggregate spend within your company or across companies, or you are trying to outsource this to a Group Purchasing Organization (GPO).  To overcome the Spend Aggregation obstacles there are a series of enablers you need to enact to make this successful.

Continue reading “Enable Spend Aggregation in Procurement!”

Differentiate With Supplier Relationship Management (SRM)!

Subscribe Here!


Differentiate with a Supplier Relationship Management (SRM) article originally published by, and permission to publish here provided by, Michael Massetti, Executive Partner at Gartner.

Democratic institutions around the world promote the core doctrine that all people are created equally. This is clearly not the case in the world of supplier management. All suppliers are not created equally and they should all be managed with this distinction in mind.

This article on how to differentiate with Supplier Relationship Management will look at a model for stratifying and segmenting your supply base within the confines of a structured and formal supplier relationship program (SRP).

Continue reading “Differentiate With Supplier Relationship Management (SRM)!”

Digital Procurement Ecosystem Creation in 8 Minutes!

Subscribe Here!


Digital Procurement Ecosystem article originally published by, and permission to publish here provided by, Sam Jenks at kodiakrating.com.

I was in Paris last week, touring around as people do in Paris, and visited Fondation Louis Vuitton.

If you’ve never been before and are a fan of art, architecture, and culture, I can highly recommend adding it to any future itineraries.

The museum’s collections are magnificent, and the building itself is a true masterpiece. Beyond the artwork, Fondation Louis Vuitton offers an experience to tour the multiple levels of decks that interweave themselves between the inside and the outside of the building’s structure.

On one of the decks sits a piece of artwork named “Where the Slaves Live”. It is a living organism, composed of inorganic and organic materials, forming a ‘living sculpture’ that is a small scale ecosystem- an ever-changing work of art.

Continue reading “Digital Procurement Ecosystem Creation in 8 Minutes!”

What is MRO and Why is it Important?

Subscribe Here!


In the world of Procurement and Operations one of the phrases that you will frequently come across is “MRO”.

But many people throw around the term without truly understanding what it means, and how important it truly is for the ongoing, and successful, operation of any company.

If your production line stops dead because you are out of stock of an MRO item you will immediately develop an understanding and appreciation for this area.

So let’s try and provide some clarification.

What is MRO? And why is it important?

Continue reading “What is MRO and Why is it Important?”

Confessions of a High Priced Expediter!

Subscribe Here!


The CEO called.  “We’re out of Parts … I need your help!”  And so it began.  These are my confessions as a high priced expediter.

Every Supply Chain is going to have supply disruption and raw material shortages at some point.  So if you work in Supply Chain you are going to get involved in some fashion.  Maybe you are calling suppliers, qualifying new,  replacement parts, or maybe you are arranging for fast delivery of the shortages.

I have been involved directly or indirectly in resolving part shortages throughout my career.  Even as an Executive I still got pulled in to these situations and asked to personally get them fixed.   Once an Expediter, always an Expediter.

Here are my Confessions!

Continue reading “Confessions of a High Priced Expediter!”

Responsible Sourcing! Making Sustainability Happen for Real!

Subscribe Here!


Responsible sourcing article originally published by, and permission to publish here provided by, Sam Jenks at kodiakrating.com.

Sustainability.

The word with so much focus and buzz surrounding it, it has almost become difficult to speak or write about.

It’s become the keyword that you see in article titles and hit like or share when scrolling by — so your friends and professional network see you care about the future of the earth — but seldom click on the link to read.

Unfortunately, sustainability and sustainable development are beginning to turn from green to grey, considering its ever-increasingly washed-out idealistic applications in business and society at large.

Continue reading “Responsible Sourcing! Making Sustainability Happen for Real!”

Business Practices Disrupting Procurement!

Subscribe Here!


Business practices article originally published by, and permission to publish here provided by, Sam Jenks at kodiakrating.com.

When I was a kid, my mom had a ’93 Ford Escort.

I remember that car as clearly as I remember banging with my fist on it’s ceiling singing Tom Petty’s Makin’ Some Noise.

Days and years went by, and eventually, the ’93 Ford Escort was living in the hybrid-dominated world of the year 2004. My mom decided that the Escort had seen better days, and started a new/used car hunt. She soon selected the Prius as her car of choice for its environmentally friendly features. The Escort joined its fellow junk metal comrades in an automotive-parts junkyard a few miles away from my childhood home.

Continue reading “Business Practices Disrupting Procurement!”

Procurement Integrity Breach – A Sure Way to Get Fired!

Subscribe Here!


Procurement integrity article originally published by, and permission to publish here provided by,  Michael Massetti  at Gartner.

The following story is true; no names or companies will be mentioned.

“Hello, Rebecca. Great to hear from you this morning. What can I do for you today?” I said to my direct report on my cell phone.

“We have a situation that needs your attention.” Her voice foretold that this was one to pay extra attention to.

“What’s up?”

Continue reading “Procurement Integrity Breach – A Sure Way to Get Fired!”

The Future of Procurement!

Subscribe Here!


Future of Procurement guest article provided by Milan Vyas.

There has been transformation in the Procurement function over the past decade. From the starting point of the traditional buy-sell, transaction-based purchasing, the practice has moved through stages of change that redefines most aspect of the business.

Continue reading “The Future of Procurement!”

Featuring Our 12 Best Procurement Articles!

Subscribe Here!


Procurement is a core function in every single company. Whether purchasing goods or services to support the company’s product offering or purchasing goods or services to support the infrastructure and operation of the company, Procurement is key and featuring our best Procurement articles is more than appropriate.

Depending on the type of industry you are in the Procurement of goods and or services can be the largest, or one of the largest, expense areas. As such the ability to efficiently procure goods to meet all objectives of cost, delivery, quality, and more is essential for not only success, but for survival.

In this “Featuring” series article we are putting the spotlight on Procurement and Purchasing. We are presenting our Top 12 best Procurement articles with information, techniques and approaches which will have something for everyone to learn from and apply in their own situation.

Continue reading “Featuring Our 12 Best Procurement Articles!”

Manage Procurement Spend Like It’s Your Own Business!

Subscribe Here!


Procurement and Procurement Spend. Purchasing. Commodity Management. Category Management.

They are all running their own businesses within their companies, or at least they should be, whether they realize it or not.

Goods and services spend in many companies is the largest, or one of the largest, expenses. And all of this is managed by Procurement personnel.

But do they manage this spend like it is their own business or do they manage it like it is just a functional job with transactional activities to be performed?

Continue reading “Manage Procurement Spend Like It’s Your Own Business!”

Spend Aggregation Obstacle Course for Procurement!

Subscribe Here!


The theory is simple!  If you can increase spend levels through centralized spend aggregation across entities then you increase your leverage in negotiations. This leverage should translate to lower costs and better terms and conditions.  But there is a spend aggregation obstacle course to be overcome first.

These entities may be different departments or facilities within your own company. They may be different companies under common ownership. They may be disparate companies within an industry. Or they may be unrelated companies spanning many industries.

The benefits seem clear. So why is there so much resistance when it comes to trying to aggregate spend across these entities?

Continue reading “Spend Aggregation Obstacle Course for Procurement!”

Indirect Procurement – It’s Time to Rise and Shine!

Subscribe Here!


Indirect procurement of goods and services can be one of the largest areas of expenditure in any company.  And the operational impact that the provision of Indirect goods and services can have on a company can be significant, either positively or negatively.

Yet the lack of attention and focus that Indirect Procurement is often given is inconsistent with the true importance of this area.  Indirect Procurement takes a back seat to Direct Procurement unfortunately.

But it is time for Indirect Procurement to stand up and be counted!

Continue reading “Indirect Procurement – It’s Time to Rise and Shine!”

Outsourcing Sourcing! 5 Lessons from Around the Globe!

Subscribe Here!


Doing business with suppliers located overseas or in another country can be an overwhelming and daunting task even for expert Sourcing professionals. But what if you considered Outsourcing Sourcing?

Recently a friend of mine asked me to have lunch with him and one of his associates.  The other gentleman had invented a new product.  He had a marketing plan.   He knew what his cost point had to be on the product which meant that he had to have the product manufactured overseas.

But beyond that he had no idea on where to start to source his product.

Continue reading “Outsourcing Sourcing! 5 Lessons from Around the Globe!”