Source One's series for keeping up with the most recent highlights in procurement, sourcing, and supply chain news week to week. To stay updated on the latest supply management articles, check in with us every Monday.
Brian Lyew, Art of Procurement, 6/22/2017
Procurement is required to have a thorough understanding of all aspects of an agreement, including the legal implications. Being knowledgeable of these components and effective negotiating strategies to enhance the overall agreement can accelerate the entire contracting process. Meeting in person for face-to-face negotiations will decrease the chances of miscommunication, offer better collaboration and build stronger relationships between supplier and procurement for the future. Along with these strategies, Procurement can also consider electronic contracting, applying a skills test, or completing due diligence to accelerate the process. For the complete list of methods for a faster procurement contact process, check out the full article.
Sonda Sahley, Corporate United, 6/20/2017
Utilizing indirect spend categories are one of the best ways to increase cost savings and achieve procurement goals in your organization. In this case, the opportunities associated with break room supplies are evaluated as a category where not a lot of time is dedicated but with a few minor adjustments can offer considerable savings. Recent studies show significant reductions in indirect spend by making small changes to paper products that have no effect on the organization's operations. Specific substitutions that can easily go unnoticed by a majority of the company will be recognized as savings and successful procurement initiatives to save in these indirect spend categories.
Michael Lamoureux, AKA The Sourcing Doctor, Sourcing Innovation, 6/20/2017
While it would be ideal to have a Source-to-Pay solution that could predict every action a person could take and support professionals from non-Procurement backgrounds, it's important to remember that these applications are not all about being capable of everything for anyone and the main goal is to generate value. Even the best applications that are noted as being easiest to use and considered logical for most of the functionality aren't completely foolproof. Vendors are making efforts but a totally foolproof application is not in the foreseeable future, and it's important to be focused on a solution that will offer the most value over being infallible.