Is Strategic Sourcing a Goal or a Dream in Your Company?

Is Strategic Sourcing a Goal or a Dream in Your Company?

I don’t suppose you have the time to implement strategic sourcing in your company…

Every week I speak to purchasing professionals who desperately want to be more strategic.

The challenges they face are similar regardless of the size of their company, the process they are currently using or their industry.

Becoming more effective and efficient seems to be a goal that is just out of reach.

I wonder if any of these issues sound familiar…

  • Cost containment and profit pressure amid rumors of staff cuts
  • Stakeholders who want it now but fail to provide needed information that will allow you to plan and deliver on time
  • Too many events that all seem to have a high priority
  • Analysis that requires endless steps in Excel to edit, copy and paste
  • An overflowing inbox
  • Working late is now a given rather than an occasional nuisance
  • Tools that work well with complex events but needlessly complicate the process for routine ones

In procurement, feeling overwhelmed seems to be the norm rather than the exception but it doesn’t have to be.

There are many paths to fix this but…

Can you build a case that will convince your boss that there is a better way?

If you don’t want to be in the same place next year or for the next five years you need to find the time.

Most people don’t believe that you can cut the time to process every event by 40%.

I understand.

But if you tell me that you don’t have any redundant or unnecessary steps in your process now I won’t believe that either.

Look at this list and see if having any or all this information for each event would save you time:

  • Contracted price paid for each service or item
  • The actual price paid with an explanation if it is different than the contracted price
  • All changes in specs in the last 3 years
  • Approved backup and/or alternative suppliers
  • Reasonable estimate of switching cost
  • Templates or tools used previously that can be updated quickly
  • Automated method to request updates for insurance and any other compliance requirements

If you had all this information and it was easily accessible how much time could you save?

15%? 20%? 40%?

What would it mean to you or your group if you could achieve this? How would you feel?

There is job security in having a full plate.

That doesn’t mean it is fun.

Most people I speak to desperately want to eliminate the feeling of being overwhelmed.

I like to read case studies and testimonials.

I appreciate them but there is always a doubt in my mind that it will work for me…

I would rather experience a new system and most people would too.

Can I offer a suggestion?

Allow me to do a pilot project for you or provide a sandbox environment so you can do it yourself.

It will be done at cost because I believe in this approach.

I am convinced that once you experience this you will have the goods to convince your boss that strategic sourcing can be a reality for your company.

Ask better questions, make changes now and 2019 will be your best year ever.

Action Step:  Every organization can get better. Finding and creating success is often a matter of taking the first step. If you are uncertain where to start, a procurement professional like myself can provide guidance and expertise to help your organization achieve the results you want.

If you want to explore a purchasing or procurement topic in greater detail, I invite you to request 30-minute discovery conversation. In my experience the next step will be apparent at the end of the call. I never assume that my recommendations will be right for everyone, so don’t expect a sales pitch. You can reach me at (973) 718-7071 x875. The call will be forwarded to my mobile phone if I am not in my office, which is likely.

Organizations of all sizes are reducing costs and increasing efficiency, without changing the way they conduct business. If you would like to know how, simply give me a call or send me an email with your contact information and the best time to reach you.

 

You Won’t Drift to Success©

Think about it.

Until Next Time, I Wish You Great Success in Your Business and in Your Life

Mike Jeffries