Supplier Collaboration is a Win-Win Strategy!

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Suppliers are an intrinsic part of the Supply Chain.  It does not matter what business you are in, what products you make, distribute and sell, or what part of the world you are in.  And it doesn’t matter where in the Supply Chain you are.  You can not accomplish anything without Suppliers.

Yet I have seen, like many of you, Suppliers treated in many different ways.  No matter what the circumstances are poor treatment of Suppliers is never appropriate.  Given that Customers fundamentally need their Suppliers to be successful why do people treat them badly?  And how do we ensure there is a healthy and productive relationship between Suppliers and Customers?

Working together with your Suppliers is always a formula for success!

Continue reading “Supplier Collaboration is a Win-Win Strategy!”

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Procurement (Part 2) – How to Enable Spend Aggregation!

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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.

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 “Procurement (Part 2) – How to Enable Spend Aggregation!”

Procurement (Part 1!) – The Spend Aggregation Obstacle Course!

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.

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 “Procurement (Part 1!) – The Spend Aggregation Obstacle Course!”

Procurement (Part 1) – The Spend Aggregation Obstacle Course!

Subscribe to Supply Chain Game Changer!

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

 

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.

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 “Procurement (Part 1) – The Spend Aggregation Obstacle Course!”