supplier management

Sourcing In the Midst of a Pandemic

Sourcing Strategies

SIG University Certified Sourcing Professional (CSP) program graduate Daniel Coggins shares how his organiztion has adapted their sourcing strategies to best suit the current challenges the pandemic has created for the sourcing world.

Daniel Coggins, Strategic Sourcing team, American Tire Distributors

Supplier Relationship Compatibility

Image of Supplier Relationship

SIG University Certified Supplier Management Professional (CSMP) program graduate Damilare Adeoye discusses why having a strong relationship with suppliers makes for more compatible businesses.


Successful supplier identification, qualification, and onboarding require a stringent supplier relationship check. This is important because it drives a long-term relationship with the supplier and the client, not based on cost, price reduction, or specification alignment.

This lesson, to me, is the art of any successful supplier relationship.

However, many procurement professionals and their organizations need to gain these skills. No wonder the relationship with the supplier is shabby, and most times, a one-way approach where the client is always looking for ways to save money and still get quality materials, and the supplier is always looking for ways to increase the price. "Any relationship that is not built on compatibility is a relationship that is heading for a crash."

In this essay, I introduce you to "what" a supplier relationship fit is and "how" to successfully develop a supplier relationship compatibility/fit, implementation, and management.

Definition:

  • Supplier: An organization that provides raw materials, products, or services.
  • Compatibility: the state in which two things can exist or occur together without problems or conflict.

Supplier Compatibility is when an organization that provides raw materials, products, or services shares similar strategic approaches, goals, and objectives.

Oluwadamilare Adeoye, Supply Chain Category Manager, GEP Worldwide

Implementing Procurement Initiatives

Image of Procurement Initiatives

SIG University Certified Sourcing Professional (CSP) program graduate Laurie Kuecker discusses how procurement leaders must change and adapt their processes to better fit their industry.

Laurie Kuecker, Manager of Corporate Procurement, American Honda Motor Co. Inc.

Building a Supplier Management Program

Supplier Management

SIG University Certified Supplier Management Professional (CSMP) program graduate James Hamlin breaks down the knowledge he's gained while building a supplier management program.

James Hamlin, Sourcing Analyst, American Tire Distributors

It’s Time to Take a Holistic Approach to Managing Procurement Risks

Holistic Approach to Managing Procurement

In what was traditionally a siloed function, separate from overall executive and organizational strategy, procurement professionals have more recently become integral to company operations and resilience. This prominence grew during the COVID pandemic, which broke down barriers between departments and raised attention to the importance of Chief Procurement Officers (CPOs) and other procurement personnel, and the work they do.

The Power of Procurement

The procurement team is at the interface between the enterprise and the extended enterprise: the organization and its suppliers. Procurement professionals are in the position to understand the risks and the wider ecosystems their suppliers operate in. They, like no other function, can make predictive connections and be able to quickly identify risks specific to one supplier or those endemic to the wider ecosystem, and quickly pivot alongside the business accordingly. And it’s not just risk, but opportunity and innovation for the enterprise, such as identifying new products, materials, capabilities and offerings.

With this greater inclusion of procurement professionals into organizational strategy, CPOs and similar roles need to begin to reframe how the function can best serve the organization, and how other departments can serve them. One key to this new way of thinking is framing procurement around holistic risk management, particularly when it comes to managing third parties, suppliers and the supply chain.

Best Practices for Taking a Holistic Approach to Procurement

While not everything in this shift can be implemented immediately, there are general aspects of agility that should be on procurement’s agenda, including:

Hannah Tichansky, Marketing Campaign Manager, Aravo Solutions

The Importance of Selecting the Right Sourcing Business Model

Selecting the Right Sourcing Business Model

SIG University Certified Supplier Management Professional (CSMP) program graduate Gicela Isla-Richter breaks down the importance of the selecting the correct sourcing business model and the levels of supplier management.


The CSMP course has provided me with the tools and methodologies to help my company ensure that the supplier provides value and complies with applicable internal and external business rules. Equally important, we can better mitigate risks and work more effectively by providing the right amount of effort to manage and build a collaborative relationship with its key suppliers.

Not all suppliers should be managed the same way: each supplier requires a “right-sized” level of governance!

What is Supplier governance?

It is a framework mutually agreed upon by the buyer and supplier. It establishes and enforces rules, distributes authority, defines working environments and identifies risks.

Depending on the importance of the service or product, supplier governance can span through multiple levels of company governance: i.e., corporate, business unit, and contract governance.

Gicela Isla-Richter, Enterprise Risk Manager, Investment Industry Regulatory Organization of Canada

Procurement KPIs: Deep Diving into Spend Under Management - Part 4

Procurement KPIs for Spend Under Management

This is the final chapter in a four-part series on procurement KPIs. Catch up on part 1, part 2 and part 3.

One of the goals of a business is to have as much spend (with a capital “S” for all expenditures: CapEx, OpEx and COGS) under management as possible. And that goal should be extended out to supplier spend, where procurement wants to have as much supplier spend influence as possible.

That way you know what you’re spending on suppliers (and the pricing component of that, of course), what you’re getting from those suppliers (i.e., supplier performance), and how well you’re spending in terms of applying best practices and tools/intelligence to the process (e.g., proactively guiding stakeholders and minimizing maverick spend).

Pierre Mitchell, Spend Matters’ Chief Research Officer

The Future of Procurement

procurement reborn

 

There is no denying that procurement must change. We can sense it in what our executive team asks of us, what our supply partners are suggesting, and the increasing role of technology in everyday procurement workflows. In addition, the business has recognized what we are capable of, which has opened the door to increased insight and influence.

Suppose procurement leaders and teams are going to be ready to make the journey ahead. In that case, we must carefully design our desired future state, leverage the resources currently available to us, including automation and broader access to talent, by tapping a virtual workforce.

ProcureAbility's vision for the future of procurement is an organization that is viewed as a partner to the business, generates value beyond traditional measurements, and leverages technology and process optimization to increase strategic focus. In the following, we will answer two of the most pressing questions: What precise mix of talent will be required? What processes and technology are needed to enable this future-state organization?

Talent: What precise mix of talent will be required?

With the rise of workforce virtualization, the sky's the limit for building out the future team. Before defining the combination of talent needed for in-house resources, it is essential to identify their responsibilities. A standard pillar of high-performing organizations, even today, is the separation of strategic and tactical activities.

Eddie Campbell, Senior Manager, Procureability

Making Supplier Relationship Management Work

supplier management

SIG University Certified Supplier Management Professional (CSMP) program graduate Indre Ciuberke breaks down the importance of the Supplier Relationship Management (SRM) Framework and the four quadrants of SRM communication that adjust the ways of working with suppliers. 


When you think about the Supplier Relationship Management (SRM) Framework, it’s not just walking and talking with your Organization partners and having a relationship with them. From my perspective, SRM is based on relationships, however, stressing the communication and information sharing process in the particular relationship. Usually, SRM has corporate attributes such as ensuring the governance, agenda tracking and managing risks associated with the services or products that the supplier provides to the organization.

Every team is focused on bringing value to the organization. SRM can contribute to this is to push the streamlined service delivery by becoming a core internal team in the organization's structure for outsourced service management.

Supplier Relationship Management Team Framework

Supplier Relationship Management Team Framework

I have tried to describe the basic SRM as an internal core team framework in the picture above. The idea is based on communication and information flows:  

Indre Ciuberke, Procurement Manager, Moody’s

Supply Chain Mobility: Sourcing Tomorrow’s Business

Supply chain sourcing

There’s a lot of talk regarding all the ways technology is going to revolutionize procurement. Blockchain can increase supply chain visibility. The Internet of Things (IoT) can change the way our business devices communicate with each other. But what type of innovations are available at the sourcing level?

From paper RFPs to conferences, it seems the way we source business has largely remained the same. Procurement teams are limited to siloed, outdated supplier databases and incomplete business information when attempting to make business decisions. It’s expensive and time-consuming to get a holistic picture of a supplier’s business health and mitigate third-party risk.

How can we adapt today’s technology for tomorrow’s sourcing needs? Here are a few innovative ways that your organization can source business.

Mobilize Your Supply Chain

I believe the key to sourcing success lies in mobilizing supply chains. Right now, supplier data is locked down in many different places that don’t communicate with each other. A large organization may have supplier data separately located throughout their ERP and CRM systems, accounting and legal departments, and Excel files floating around from supplier diversity programs, in addition to their procurement arm.

Teams are often tasked with managing legacy Electronic Data Interchange (EDI) systems with high overhead costs and systems that are unable to effectively manage the dynamic nature and sheer abundance of today’s business data. Traditionally, supplier information has been limited to line items such as name, tax ID, quantity and price of a sourced product, and remit-to-pay.

Daryl Hammett, CSMP, CSP, C3PRMP, Global Head of Lead Management and Operations Amazon Web Services (AWS)

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