Associate Guest Post by Rusty Joerin of Woodsgift Enterprises
Quite some time ago during a contract management course the instructor (thank-you Robert) summed up purchasing’s responsibilities as finding, binding and minding your suppliers. While these continue to be essential activities of procurement much has since changed in the context and processes of their application. Procurement managers are expected to contribute to the refinement of organizational procurement related processes and to ensure that their functional strategies support the organization’s strategies.
I consider strategic management to be the alignment of all activities to support the mission, goals and values as articulated by the organization’s leadership.
Finding a competent supplier that really understands what you need and will deliver your requirements in a superior manner requires hard work. Finding a supplier begins with defining your needs and communicating them in such a way that is understandable to a range of competent suppliers willing to compete for your business.
Binding your supplier is more than signing your or their contract form. If contract terms are not satisfactory then it is unlikely you will find let alone bind a competent potential supplier. Marketplace knowledge and negotiation skills are required of the procurement professional.
Minding your supplier should not be an afterthought. Good relationships require planning, understanding and more hard work. Contract terms are not a substitute for good relationship management.
I will discuss issues related to finding, binding and minding suppliers in the context of strategic procurement management in future editions of Better Value Procurements.
Rusty James Joerin, SCMP is a Supply Chain Management Professional and accredited by the Purchasing Management Association of Canada. He offers procurement services primarily to public sector organizations that do not have a professional supply manager on staff and provides additional capacity to assist with project related supply.
Information about his experience and qualifications may be found at:www.woodsgift.com
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