Too often Procurement is associated with saving money – unit prices, total contract value, rebates. But for most organisations the value that our expertise can deliver can be so much more.
Rory Canavan of SAM Charter offers some pointers on what to watch out for when it comes to applying a pinch of SAM best practice to Software Contract / Vendor Management.
It may sound obvious that negotiation is an important part of any procurement strategy, however there is more to negotiation than people sometimes think. We have worked with lots of individuals over the years who think that Procurement’s role is to come in at the end of the sourcing process and ‘beat the suppliers down on price’. For some simple, commodity purchases, once you have confirmed that you have the right specification, it is definitely about price and delivery and you can shop around until you get the best deal. However, for more strategic sourcing you need a procurement strategy that incorporates all the elements of the purchase to ensure you are getting the best overall terms.
Meaning: Significant strength… well we are certainly experiencing an event of significant strength with the current global pandemic. One minute the road appears to be clear with a vaccine in our midst and the promise of normality returning in some guise, then the new variants have thrown in a significant game changer. Throughout it all though there are the incredible people planning and delivering the roll out of the most significant vaccination programme ever undertaken to get us up and running again.
It sets out, in a logical format, the past, present and future landscape of your procurement function and how it supports the wider business strategy. That is it! In the words of the immortal genius Baldrick, “I have a cunning plan” (thank you Neil). But what more can we say about it that may help future procurement owners develop their own strategies?
There is a light at the end of the COVID tunnel, and whilst none of us have a crystal ball to show what the future holds, we can be certain that our businesses need protecting and bolstering. This is a great chance for Procurement and Commercial Teams to partner with the business to deliver on efficiency opportunities and mitigate internal and external risks.
In these uncertain times, increasing focus is being put on reducing cost whilst increasing efficiency and performance. For many organisations, these targets lead a path to the IT Team and strategic sourcing.
Supplier relationship management in Procurement as part of the lifecycle is a necessity and most organisations understand the benefit of managing third parties throughout the life of the contract. But is focussing on the top 10 spend suppliers enough? The importance of negotiating to get the best terms at the contract stage requires oversight post signature to ensure that the full value is delivered.
All businesses understand they can’t possibly operate without the help of third parties but the decision of when to manage requirements in house vs procurement outsourcing expertise can be a tricky one.
Procurement Outsourcing: Which systems integrator should you engage for your project implementation and what is the best delivery model? How a clear strategic sourcing approach for IT Procurement helped select the right SI partner.