In the previous blog we touched upon the strategies employed by best-in-class sourcing organizations.
Moving on to the capabilities of best-in-class sourcing organizations.
As per the survey taken by Ardent Partners on key performance indicators (KPIs), the greatest capability of best-in-class souring organizations is its ability to collaborate with key stakeholders – both internal as well as external.
Collaboration with internal stakeholders
While leveraging technology can help organizations standardize the processes and make them more efficient, what makes a bigger difference is the quality and quantity of connections the procurement team keeps with the stakeholders. As procurements’ mission and priorities converge with those in other departments, it becomes critical for sourcing teams to better align themselves with these departments.
Collaborating with key line-of-business budget holders is critical for sourcing teams, as they need “friends” in high places to recognize the value that strategic sourcing initiatives bring to their departments and business units and rightfully support these endeavors and commit the necessary resources.
Collaboration with suppliers
“Managing supplier relationships is a lovely thing to do if you can do it…. you really should be able to tap into the supplier base to try to get the latest and the greatest thing, especially now, when everything is changing at the speed of light.”- Dr. Nick Nayak, Ex-Chief Procurement Officer, U.S. Department of Homeland Security
Best-in-Class sourcing teams realize the value of supplier collaboration. They understand that supplier relationships are assets that can grow in value. Suppliers can conduct a needs-wants analysis for the sourcing team and help that team prioritize and optimize spend over a period of time to save money. Suppliers can also provide a risk assessment of their own markets and solutions to ultimately help sourcing teams determine if they can accept or mitigate certain kinds or levels of risk.
Stay tuned as in the next blog, last in the series we will cover the foundation and key takeaways for sourcing technology success.
