Summer Rainy Day Thoughts on Purchasing and Procurement
A rainy day in the summer can be a wonderful time to reflect.
Perhaps this will serve as inspiration for you to take stock of your procurement and purchasing group.
Motivating people to take ownership of every spending decision is one goal I would put at the top of every list.
Relevant data that is available at the moment you need it is the one issue that I believe would raise performance dramatically in every organization.
Collaboration can create dynamic competitive advantage.
Building a strong process and team can seem like a never-ending journey and it is. Celebrate your successes along the way.
Entrepreneurs think and evaluate risks differently and finding even one person for your team with those qualities will very likely be a big plus.
Generating cost savings and time efficiencies should be part of the culture not just a goal.
eSourcing tools are available that can help organizations generate time and money ROI even if they only have one event a quarter or one event a year.
The Pareto principle (also known as the 80/20 rule) is so relevant today given the amount of data available and the speed that things change. It can be tempting to try to squeeze every bit of savings and efficiency out of a category. A far better approach is to understand the handful of factors that impact the category and attack them.
Rogue spend isn’t all bad. It can help you understand the flaws in your process.
Examining the methods of CPOs who have had success in multiple industries leads me to believe that most organizations face the same strategic issues.
Every organization will have people that will embrace change and naysayers that never will. Getting the people who don’t fit in either group to support your efforts will ensure your success.
People at all levels know where money is being wasted. Appreciation and recognition can go a long way toward motivating them to share their knowledge.
There is one other observation I would like to share because I believe athletic teams have many of the same challenges that organizations do. There is at least one area that they are different. Prominent teams face a level of daily scrutiny and second-guessing that companies only face in times of disaster.
Think about the success the Los Angeles Dodgers are enjoying. They are a microcosm of a global company.
Many of the players don’t speak the same language or have the same customs and beliefs.
The executive team is doing a masterful job of inspiring people with tremendous talent and ego to work toward the same goal. Their manager communicates and motivates players under pressure in game situations despite the language barrier.
Challenge, change and the ability to adapt are skills they need to apply in every game.
They may not reach their ultimate goal of winning the World Series this year but they appear to have a team that can compete for it for many years.
They also realize that it is a never-ending process. Sounds familiar, doesn’t it?
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 973-936-9672.
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