Tag Archives: career advice

Teamwork Makes the Dream Work

Like the Breakfast Club banding together to overcome Assistant Principal Vernon, life is much easier when we collaborate. And procurement should be no different.

By Natalya Rozhkova/ Shutterstock

This year will be the year of collaboration in public sector procurement – you heard it here first! In the past, collaboration may have proved to be a step too far for some for various reasons. However, the challenge the public sector now faces is the need to use collaboration and collaborative procurement to share resources and find new, more efficient ways of working.

Procurement professionals are stretched thin. On one hand, we’re trying to keep a handle on all the transactional tasks required to facilitate procurement. On the other, we’re trying to influence and input to strategic decisions that could shape the professions future. So it’s critical that we are using our time wisely and using all the tools at our disposal.

Collaboration can take many forms, but one thing is for sure – the public sector could be much better at it! Go back and look at your projects, tenders and contracts from 2018. How many of them did you start from scratch? Did you have, and maybe reject, the opportunity to work with other procurement teams? Did you approach other authorities or public sector institutions to see if you could get a copy of their documents?

The Breakfast Club started out the same way. They all considered that they were too different to get along, that they had nothing in common. They all approached the detention task as something to be done in isolation (or not done at all). It wasn’t until they started talking (collaborating) that they realised that they could work better together. And in the end produced one assignment for all of them that did the same job.

Let’s Get Collaborating

Collaboration should be both an internal and external activity. From the outset of any project or procurement exercise, procurement should be involved and working closely with their internal stakeholders to define requirements. Once these requirements are known, it’s time to open up the field to the wider audience and see who has done this already.

Public sector procurement, as we have already said, spends a lot of valuable time and resources creating new documents that someone may, and probably has, created in the past. This is where the real benefit of a framework lies. Frameworks, Dynamic Purchasing Systems and other collaborative procurement opportunities can help reduce the time spent on administrative (read: non-strategic) tasks, saving money and freeing up resources.

This is the same even if you happen to be the Authority or public sector body setting up the framework itself. As with many of these things, putting the time and work in at the start can help to create savings and benefits further down the line.

Time vs. Inflexibility

A framework provides a list of pre-qualified suppliers, usually against a Lot with a specific scope of requirements, from which procurement can run mini competitions, create call off contracts or even direct award business.

From a buyer’s point of view, there’s no requirement to advertise opportunities under the framework, even if they are above OJEU values, on top of potential economies of scale and less time spent between identifying a need and fulfilling it. For suppliers it reduces the burden and costs of applying for tenders and potentially increases the possibility of winning business by focusing in on a smaller market.

However, this is not to say that frameworks aren’t without their drawbacks. For buyers, the main issue is that once the framework is in place, it’s not flexible in response to changes in the market. Neither new suppliers to the market nor previously unsuccessful supplier can access the framework and tender opportunities. This means buyers could be missing out on new solutions or have a framework whose scope is lagging behind new developments.

Suppliers face the possibility of spending significant time and money getting on the framework to not get any returns. Although they are on the framework, contracts may be awarded without competition, or not placed through the framework at all.

The Players

None of these drawbacks should put you off looking at using frameworks if your procurement needs can be met with them. There are a few big players in the public sector when it comes to collaborative frameworks all of whom are worth a look at.

  • Crown Commercial Service (CCS) – essentially the procurement arm of the Cabinet Office, helping UK-wide authorities and public sector bodies procure a huge range of requirements. With spend of £13 billion in FY2017-18, CCS states that its frameworks have delivered over £600 million worth of savings for its users.
  • Scotland Excel – owned and funding by the 32 Local Authorities in Scotland, Scotland Excel has the same aims as CCS, but works to focus on the requirements of Scottish members and public sector institutions. However, they work increasingly with CCS to ensure access for all public sector to the widest range of frameworks available.
  • Yorkshire Purchasing Organisation (YPO) – owned by 13 English Local Authorities, YPO has around 100 frameworks and 30,000 products, covering everything from Utilities to furniture.
  • Eastern Shires Purchasing Organisation (ESPO) – jointly owned by 6 English Local Authorities, ESPO offers a range of UK and EU compliant frameworks (worth £1.7 billion spend in 2017-18), as well as an extensive product catalogue.

These are just a few of the names you will inevitably come across when looking for a public sector collaborative procurement framework. The beauty of these organisations is that, despite crossover in the types of frameworks, they collectively cover pretty much anything you might want to buy. All the frameworks are easily accessible and open up a corner of the supply market for whatever your requirement is.

Shop around, see which framework suits you and your organisation the best and go from there. And if all else fails, look and see if you can set up something yourself. You may even be able to help your fellow public sector professionals (or work with them) to collectively meet your requirements.

I’d love to hear your thoughts on this article and the series of articles on the challenges facing public sector procurement in 2019. Leave your comments below, or get in touch directly, I’m always happy to chat!

How To Make Your Company More Honest (And Why It Matters)

It’s a fact that honest companies outperform their dishonest competitors. So how do you motivate your teams to perform with greater integrity?

By Dado Photos/ Shutterstock

There is ample evidence that honest companies outperform their dishonest competitors. And while almost every company says they are honest, many do not create and support a culture of honesty.  The research tells us there is one key thing any company can do to ensure we are honest at work. 

According to annual research conducted by global accounting firm EY, 97 per cent of businesses say it is important that they operate with integrity. Businesses want to be honest for one very simple reason.  Their reputation is on the line.  Almost all of them rate customer perception as the most important reason to behave honestly, with public and shareholder perception coming a close second and third. 

They believe that honesty, or at least having your customers, shareholders and the public believe you are, is key to successful business performance.  Obviously, acting with integrity makes it easier for organisations to operate by reducing scrutiny and fines,  but there are other much more important ways that honesty improves business performance.  Dishonesty also has a direct impact on the bottom line.  A recent study by the Association of Certified Fraud Examiners found that about 5 per cent of a business’s annual revenue is lost when that business is struck by dishonest acts such as asset misappropriation (theft and skimming), corruption (bribes and conflicts of interest) and financial statement fraud (misreporting sales and expenses).

Besides those direct impacts, honest organisations attract the best employees and customers. We would all prefer to do business with an honest seller or buyer and we would all prefer to work in a place that has a reputation for integrity.  While the impact of better customers and employees is difficult to measure, there is little doubt both improve the bottom line. Every year Ethisphere ranks the World’s Most Ethical Companies and compares their performance to their competitors.  Their research shows that over the five years to 2018, the World’s Most Ethical Companies outperformed the US large cap sector by 10.72 per cent.

So, the benefits are clear.  But according to the EY report one in six companies still undertake fraudulent and corrupt behavior. Its not for lack of policy.  Almost all organisations have implemented anti-fraud and corruption programs and 95 per cent say their senior leaders set examples of good ethical behavior. 

The problem isn’t lack of desire for honesty.  The problem is getting everyone to actually behave honestly.  There is however one key thing every organisation can do to drive a culture of honesty, remind us we are honest.

The research on cheating and lying tells us that it doesn’t take much to remind us that we are all, at base, honest people who are happier if we behave morally. Once we remember that, we generally behave that way. The most effective method to remind people of this is to prompt honesty at key moments. Usually these little prompts are cheap and easy to implement, and most important when we are tempted to fudge things a bit. Professor Dan Ariely from Duke University has spent more than a decade putting people in situations where they could lie and seeing if they do.  His research demonstrates that people don’t lie more just because the reward for lying is bigger and they don’t lie less just because the chance of getting caught is greater.

When people don’t have to lie to a person face to face in return for the reward, they cheat a lot more.  Making us deal with people face to face halves the chance of dishonesty.  And we are also more likely to be dishonest if we think everyone else is being dishonest and conversely more likely to be honest if we think everyone else is honest.

But the real kicker, was the one thing that stopped almost all the lying.  It was simply reminding us that our workplace has code of honesty before we are put in a situation where we might be tempted to be dishonest. Bizarrely the studies showed that even something as simple as getting people to sign the top of the test (before they lie) killed the cheating. If they signed the bottom, after they lied, they cheated as normal.

When this was implemented in a large-scale trial of insurance applications, the results were even more impressive. Researchers from the Harvard Business School decided to see if signature placement on insurance forms changed the level of honesty in disclosure. The results showed that customers self-reported 10.25 per cent more miles when they were asked to sign the declaration of honesty before they filled in the form. This would amount to an insurance premium being on average $97 more costly per car depending on whether the form was signed at the top or the bottom. Even at a significant personal cost, people were more inclined to be honest if they declared honesty before they filled in the form.

Of course, the other way to stop people lying is to do what they did in the control state of the study – check everybody and everything all the time. But who really wants to work in a police-state? Life is so much easier if you can trust people to be honest. 

Why You Need To Hyper-Specialise

The days of the generalist are over. Today, the most influential people in your organisation are those with the ability to hyper-specialise.

By StockEU / Shutterstock

When I first started working in the world of influence and influencers, it was possible to own a massive space; whether it was leadership, real estate, finance, money or health. There were very few “gurus” who had access to a platform from to talk about their wide area of expertise.

Today, however, everybody has a platform. The internet is crowded with blogs, podcasts, Youtube channels and social media influencers, with the result that there’s way too much noise to own a huge space anymore. Now, the future belongs to micro-influencers; micro-authorities who hyper-specialise.

When stakeholders need help from a procurement professional, they need to be able to find you fast. They want to know – straight away – whether the space that you own aligns exactly with their situation and needs. An IT professional, for example, doesn’t want advice from a procurement generalist. They want to talk to an IT purchasing specialist – someone who understands the challenges involved and is well-known as an expert in that space.

Do you own your space on Google?

When was the last time you Googled yourself? Take a minute to do so now. What did you find out – do the search results make it clear what space you own?

According to Harvard University, over 50% of decisions are now made before we ever making contact i.e via what I would call “Google stalking”. When you first make contact with a talent prospect, a supplier or a potential consultant, one of the first things they will do (I guarantee it) is Google stalk you. If what they find is irrelevant, not specific to their needs or if they can’t find it fast enough, then you’ve lost that race.

To become an influencer, you have to own your space – but you can’t own a space unless you are clear on what space it is that you want to own.

Influence Intersections

But how do you find out the niche that you want to own? How do you discover the hyper-specialisation that will set you apart from everybody else?

Let me introduce a concept that I call Influence Intersections. Picture a Venn diagram: the first of the two circles is a world in which you have mastery, insights or experience. Then you overlay this with another world where you have mastery, insights or experience. The intersecting space in the middle is the space that only you can own. The space where your expertise will stand out.

Two celebrity influencers who hyper-specialised

Take Jamie Oliver – when he first started out there were many celebrity chefs from six-star hotels and restaurants. Then Jamie came along, and what did he have? He had mastery, experience, and insights into the high-end world of cooking, but he also had personality. The personality he brought to the front was that he understood families and what it’s like to cook for your children on a budget quickly in a healthy way. The place in the middle between those two spaces was a place that only Jamie could own.

Steve Jobs is another famous example. He took the world of engineering and computers and overlayed this with another world he knew – the world of the creative innovator. That space in the middle then became the key Apple needed to dominate the marketplace.  

Why should a procurement professional hyper-specialise?

One word – influence. Procurement professionals are typically frustrated by their lack of influence (or “seat at the table”) within their organisations, but building up your profile and becoming known as the go-to expert in your space will lift your influence and cause others to seek out your advice. Imagine, then, a whole team of hyper-specialised procurement professionals, each one famous in the organisation for owning their space. How influential would that department become?

It’s also a great tool to keep in mind for your next career move. If you begin hyper-specialising today with the aim of becoming known as the guru in your particular space, you might just be in a job interview situation one day where the interviewer says, “I’ve heard of you – your expertise is a perfect fit for this opportunity”.

Remember, the days of the generalist are over. Generalists rarely become voices of authority. In addition to not being renumerated as well as perceived ‘experts’ they also receive less engagement and fewer opportunities. Specialists, on the other hand, receive more credibility, more respect, more opportunities and more influence. 

What are the two worlds you can overlay to find – and own – your space?

5 Productivity Hacks You Should Be Using Now

When things are really hitting the fan you don’t just need one productivity hack – you need an arsenal.


By Suzanne Tucker / Shutterstock

The panic is real. So many things to do, all of equal value and all due yesterday! How do you cut through the noise? Here are my proven hacks for achieving the impossible.

Mindset

The most important place to begin is your mind. Often in high pressure situations you begin to worry. You worry about the volume of tasks you need to do, the timeframes, the pressures put on you to deliver and the number of project responsibilities.

Within this context (the brow furrowing worry), the brain becomes overwhelmed. Research has proven that ability of working memory to direct attention to what’s relevant is incredibly compromised, the brain is effectively running lots of programmes at once and everything slows down. In terms of how the brain processes information, we know that the brain dedicates capacity to verbal information and some capacity to spatial information. When people are worried it is common that they talk to themselves in their head – worries tend to be verbal and therefore compete for the limited pool of capacity.

Psychologist Sian Beilock found that when students are presented with a mathematical problem presented horizontally “32 – 17 = x” it demands more of the brain’s verbal resources than when the same problem is presented vertically.

The brain processes vertical information visually and therefore accesses the spatial capacity which has less demand for its resources.

This is often why making lists can feel better!

Taking back control

Understanding how the brain works is one thing but if things are really hitting the fan then don’t just need one productivity hack – you need an arsenal! Here are my top five productivity hacks to help you take back control.

1. Eisenhower Matrix

President Eisenhower was on to something when he shared this technique of decision making and prioritisation. It is a four box quadrant that helps you organise tasks in order of urgency and importance. My on-the-ground approach is to draw up four large boxes in my notebook and head them up according to what I need e.g. Urgent / Do now, Do next, Monitor, Delegate then I simply put each task under these headings and focus on one thing at a time.

2. Find an organisational app like Trello

Once you have identified the individual tasks and organised them into an Eisenhower, it can be helpful to transfer them to an electronic platform where you can easily access and update them. I am a huge fan of Trello, it is a free “to do list” app that I use for all of my projects. Having your to do list in an electronic platform gives you the opportunity to share your to do list and collaborate with other people as well as update things when you’re on the go.

3. Pomodoro Technique

This is a time management technique that dates back to the 1980’s, it was created by Francesco Cirillo and is based on the principle of short, sharp, concentrated bursts of activity. If you’re curious, the technique is named after the Pomodoro (tomato) timer that Cirillo used when he was at university.

Once you have your Eisenhower Matrix completed and your life uploaded into Trello, take the most urgent tasks and block out your calendar accordingly. You may need to play with the time period that suits you, some people can do a full hour but I prefer no more than 30 minutes – that’s a long time concentrating on one task!

4. Technology lock down

It’s so simple to do and yet most people do not apply this last trick, shut down the emails! Close your emails and any other system that can notify or distract you.  Do not assume that you are superior to the temptation of technology and distractions. If you see an email pop up, you will be tempted to answer it. Just say no!

5. Change your environment

If possible, work away from your usual spot. Either work from home, a different desk, a café, a meeting room. It can be anywhere just as long as you can concentrate. Breaking away from your usual work spot should reinforce the objective you are trying to achieve, and most importantly it can keep you from being interrupted.

If you implement all of these tools and combine them into a new way of working, you will be sure to come out the other side winning. What are your proven hacks? Share in the comments, I’d love to hear about them.

3 Ways To Make It Big In Procurement and Supply Chain

Tom Derry, CEO – ISM shares his three top tips for early-career professionals who aspire to be a CPO or Head of Supply Chain in a leading organisation.

The next generation of CPOs and Heads of Supply Chain will need to be “next-level” talent.

“It’s easy to point out a few critical success factors for people who have risen to the very top of the profession,” explains ISM CEO – Tom Derry.

In this article Tom shares his three top tips for early-career professionals who aspire to be a CPO or Head of Supply Chain in a leading organisation.

1. Align yourself with the best in the business

One of most important things to do during the early years of your career is to align yourself with the best talent out there. “If you’re just getting into the field or are early on in the field discover who has the best reputation, who’s the best leader and who’s regarded as being leading-edge and running a great organisation” Tom suggests. It’s also advisable look at the company’s reputation. “It’s clear that certain companies have created an awful lot of talent in our profession, disproportionately more talent to other companies.” So find those great leaders, at those great companies and that’s going to be a launching pad for you.”

2. Be courageous

“There are a lot of metrics of dubious value that we often pay attention to in the profession that have outlived their usefulness.” Tom says. He advises professionals to try and link what they’re doing day-to-day with what’s driving value for the firm – whether it’s bringing new products online, introducing new features to new products, driving top line revenue growth or increasing earnings per share by reducing cost. “Speak the language of the business and link explicitly what you’re doing to driving those kinds of outcomes.” This will help you to gain respect because that’s how we keep score in business and those are the measures that matter the most.”

3. Be competitive

“Businesses are about competition,” asserts Tom. “It’s about competition between firms but, frankly, it’s also about competition within the firm to gain resources to win the opportunities for promotion and advancement.” Tom believes it’s important to understand that you are competing, you’re being regarded by your superiors in the firm in terms of your output and your productivity. “You’re in a competition for advancement – maybe it’s advancement within the firm, maybe it’s advancement in another firm but you have to recognise that and put your game face on every day. As they say in sport: leave everything on the field. At the end of the day someone may outcompete you if you’re not taking that approach.”

Part Five of Tuesdays with Tom is available now. Click here to sign up and hear ISM CEO Tom Derry discuss top tips for aspirational early-career professionals, how high profile leaders can become talent magnets in supply management and the latest data on salaries.

Best Of The Procurious Blog – Is It Time To Make A Career Move? Mind the gap

When things get bad at work do you find a way to fix it or consider a career move?

The bad days are becoming more frequent, the work is no longer challenging and your procurement career seems to be floundering.   The question arises: what must you do to kick your work life into action?   If you have a general feeling of being undervalued or not being fairly recognised for your achievements, now is the time to take stock. Work takes up at least 40 hours of your week.  Life’s too short to be miserable, this is decision time.

It is unlikely that your current situation will improve much unless there is a radical change in management or strategy.  The options are:

  • Move into a new role at your current employer or
  • Move on to a different employer in a similar or different role 

Assuming that procurement is still the place you want to be, there are some steps you need to take whether you plan to stay with your current employer in another role or move on to new adventures.

Do a personal gap analysis

Take a deep, introspective look into yourself. The aim is to identify the knowledge gaps between the skills you need for your chosen direction and those that you currently have.  What changes should you begin making to prepare yourself for the kind of job you want? As Abraham Lincoln said, “The best way to predict the future is to create it.”   Be realistic about your current capabilities.  Then go and fill the gaps.

Consider further education   

There’s no doubt that further education and continued professional development play a part in opening up opportunities. The reality is that most the attractive roles require some tertiary education or certification, especially in a tight job market. If you are lagging in this area it may be an opportune time to upgrade.   If your current employer can subsidise your work-related studies, take advantage.    No funds?  There are lots of free training available, there’s no excuse.  What about a Massive Open Online Course (MOOC)?

 Learn the new skills

There are roles that didn’t exist ten years ago and those are where experience is in short supply.  The application of I.T. technologies to procurement problems is growing fast:  consider data analysis and warehousing, supplier relationship management (SRM), and procure-to-pay (P2P).   Also, both the public and private sectors struggle with issues of fraud, corruption and conflict of interest. Companies need people who can exercise constant vigilance over supplier risk, governance and contract compliance.

Sustainability issues are placing new demands on procurement leaders and their teams.  “Green” procurement is a growth niche where there is a limited number of experienced applicants and pressure is building on companies to limit their negative impact on the environment.  Focusing on fields that concern you (and the consumer) and those that play to your strengths will deliver the most work satisfaction.

Get a grip on the numbers

Whatever direction you choose, advanced analytical abilities are becoming mandatory.  An in-depth understanding of financial ratios and the triple bottom line can give you the edge over others competing for similar roles.  If you don’t know what macros or what a cash flow crisis is, now is the time to find out. If your current company offers in-house courses that can enhance your computer skills, sign up.

Influence and persuasion

A survey conducted recently by Accenture amongst global CPOs noted that traditional areas of knowledge and experience are less important to success than the ability to develop and sustain high quality internal and external relationships.  Stakeholders can influence your project’s success or failure.  Good stakeholder management just means being able to win support from any and all interested and affected parties such as end-users, subject matter experts and key suppliers.

Attitude is important, that much is clear.  It seems behaviour and demeanour can impact on career progression as much as technical know-how.  Always do what you promise to do.  To paraphrase  J.F.Kennedy,  don’t think about what your stakeholders can do for you, think what you could do for them.

Communicate your successes

Keep an on-going record of what you have done well, e.g. reported cost savings, accolades you have been given, and positive feedback received from internal customers.  This information can be used to enhance your CV.  Don’t be shy to share your successes; it’s a good confidence booster.

Moving employers   

Moving on to another employer or launching yourself as a consultant or contractor may be a choice, or it may be thrust upon you.  Protecting yourself fully from downsizing and “restructuring of the workforce” is pretty much impossible.  Don’t despair. Review your achievements to date, fire up your CV and take yourself to the market.    Sometimes you have to take a step backwards to move forwards.

The best a person can do to rise above the mainstream is to have a good attitude, stay relevant, keep up with trends, communicate well and keep the networks alive.  Sometimes the current environment is not going to deliver the options you need. Then it is time to move on.

Best Of The Procurious Blog – How To Tell You’re Working For A Psychopath

Psychopaths are present in every workplace. And the higher you go in the organisation, the more likely you are to encounter one.

Working for a psychopath is no holiday. Here’s how to tell if your boss is one, or just a garden variety bully.

A human resources manager is more likely to know them as sociopaths, micromanagers or workplace bullies. I call them psychopaths, not to insult them or even to suggest that they might be chopping people up for fun, but because they share a common set of character traits with all those personality types and also with criminal psychopaths.

1. They are two-faced

A workplace psychopath has a two-faced nature. One face oozes charm and charisma, while the other is viciously mean. They work very hard at flattering those that have power over them, but present a very different face to the people that work for them. To most of their team they are manipulative and controlling. People who work for a psychopath see this face most of the time.

2. They have a pawn

Psychopaths will also recruit a pawn or two. These are people who the psychopath won’t attack, so long as they do their bidding. Frequently it is the pawn delivering the latest piece of manipulation rather than the psychopath themselves. This allows them to put distance between them and their victims and build in automatic plausible deniability if it goes pear-shaped. “No, Terry-The-Pawn was acting on his own initiative, it was nothing to do with me.”

3. They are excellent liars

They are convincing liars and they lie compulsively, often for no apparent reason. The truth to them is whatever needs to be said at that moment. It is whatever they judge their audience wants to hear. And they will have no compunction aggressively assuring you something happened which you know didn’t, often to the point where you will doubt your own memory.

4. They treat employees as dispensable livestock

They treat most people who work for them as dispensable livestock. And this usually causes the cattle (that would be you) unprecedented levels of stress, frustration and fear. When one victim burns out or leaves, they just move on to the next. They damage the health of individuals and the reputation of the organisation without any regret or shame. The workplace under a psychopath is in constant turmoil. Factions are rife, sick leave sky-rockets, staff turnover becomes endemic and productivity drops like a stone.

5. They can’t take criticism

They react to any criticism with aggressive denial or retaliation. If those aren’t options, usually because the critic has more power than them, they will feign victimhood or blame the victims of their actions. Punishment and threats have absolutely no effect on them. They will keep doing things their way, regardless.

In short, they are the classic malevolent workplace bully. This is not to say that all bullying in the workplace is done by psychopaths. Bosses can be mean but it is the frequency of bullying-type behavior that sets psychopaths apart from an everyday horrible boss.
In 2008, UK researcher Clive Boddy from Middlesex University set out to determine exactly how much workplace bullying was caused by psychopaths.

Boddy took a psychopathic checklist and embedded it in a management survey of Australian middle and senior managers. Almost six per cent of the respondents were working with a corporate psychopath as their current manager and thirty-two percent had worked for a psychopath at some time.

A further eleven per cent of respondents were working with managers who showed some psychopathic traits but were not rated at maximum in all categories.

The respondents also revealed how many times they had experienced bullying. Under normal managers, employees encountered bullying less than once a month (nine times a year), but the moderately psychopathic managers bullied employees more than twice a month (on average twenty-nine times a year), accounting for a twenty-one percent of all bullying. If that manager was a psychopath, the employee experienced bullying more than five times a month on average (64.4 times a year) and this accounted for twenty-six percent of all reported cases of bullying.

This means that, as an employee, you can, and probably will, be bullied in the workplace. If your boss is normal, bullying will happen once every six weeks or so. If you are working for a psychopath it will happen once or twice a week, or more. If the behavior described above is happening all the time then your boss is a psychopath. The bad news is that there are not many good options for solving it.

The exit beckons, but while you wait for the right opportunity, there are a number of things you can do to protect yourself and improve your position. Those strategies are the subject of the next part of this series.

3 Mistakes That Will Destroy Trust Between Procurement And Suppliers

As you’ll  know from your personal life, the most loyal friendships are earned through  experiences, challenges, and good times. So why should be any different with your suppliers?

If you have a vendor who constantly demonstrates great performance and continues to deliver and deliver and deliver…reward them! Give them extra projects or new developments and more business. Don’t continue to pressure them and penalise them, because this relationship might erode over time. Perhaps it could still functional and transactions will happen, but the relationship will be affected as a result.

Here I have collected three typical mistakes that will destroy trust between a procurement organisation and its suppliers.

1. Empty Threats

“Be constructive in your arguments and honest in your feedback…”

This was one of the first lessons I learned from a mentor when I asked about contract negotiations. It’s simple but powerful and it genuinely creates trust.

If you are bluffing –a professional partner will recognise it. And you want to work with professionals, right?

Walk the talk. If you’re claiming that a supplier is offering a better price – be able to prove it.

Making empty threats is either the result of a lack of preparation  or a lack of any decent arguments full stop.

Remember that trust is the base for a good partnership. And fake promises can easily destroy trust.

2.  Continue negotiations after contracts are signed

I have to confess that I’ve done this many times in my procurement career so I understand how harmful it can be.

There is an unwritten rule for sales people that states you should stop selling after the client has agreed to a deal.

The very same  rule should be applied to procurement professionals. We should have the ambition to reach the best deal within our budget and time limits, we should consider risks and potential threats but all of this should happen before we agree the final contract. After the two parties agree prices, terms and conditions of contract, everyone should concentrate on execution.

Normally we set certain deadlines for the supplier selection process and close to these deadlines we can become more and more stressed, losing focus and failing to mention  important details or opportunities. As a result we often finalise the agreement not because we are sure that this is the best deal, but because we are short of time.  And then, after the documents are signed, we attempt to save costs further with the vendor.

Procurement professionals must act professionally in such situations. Simply opening up new negotiations with the vendor will destroy trust, sending the signal that the agreement means nothing to you and that you’ll happily switch to a better alternative whenever you get the chance. As a result, they will also de-prioritise you as a customer and not invest the time and efforts into developing your products.

If you see an opportunity to decrease prices after the contract is signed,  be open and transparent to your vendor. Explain your reasons set the arena for a new discussion and listen carefully. With any luck you can find a solution that suits you both.

3.  Focusing only on price reductions

I like to explore competition in Procurement! Preparing a good RFQ/RFP process and making suppliers fight for your business is great isn’t it?

Doing this process a number of times within the same product group will definitely lead you to a dead end. You’ll reach a threshold where quotation will not bring more savings.  It’s a frustrating moment when there is no more low hanging fruit, no more chances to cut the prices by reverse auction or bidding processes. So now what?

In most cases the extra revenue can be gained in more ways than simply cutting your suppliers’ margin or increasing purchase volumes.

Look into the business relationship, the supply stream and the infrastructure of the business and investigate where we can save costs and do things better, faster and smarter. More often than not, if we really find this momentum and use it to reduce costs, we will get bigger volumes into this business. New projects will come and more development will happen if the relationship is strong and there is trust. This will also result in more revenue coming to both sides – it’s a win-win.

Procurement Careers and the Power of Intent

Jason Ng explores the power of intent when it comes to embarking on a procurement career…

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In your career, you will come across procurement professionals with finance and accounting qualifications ranging from CPA, CA or even CFA – all of which are complimentary to procurement however unnecessary to enter.

If you dig a bit further and have a conversation with one of these professionals, you’re very likely to find out that they “accidentally fell into procurement” or “didn’t really know what procurement was, and before they knew it X years had passed”. These answers, although interesting, trigger a multitude of questions about the level of passion and commitment to the profession.

Do they like procurement? Or are they just happy with the pay check? Would this have changed if they were properly informed at the start and consciously chose procurement rather than have procurement choose them? Of course, the power of hindsight is a powerful thing unless you are early in your career and have the greater power of choice, which I am hoping you have at this point of your journey.

During my seven years in procurement I have come to realise that I am certainly part of the minority of people who embarked to learn and understand the profession before seeking a career in it. This has set me apart from my peers as the drive to understand what more I can learn about procurement excites me way more than waiting for my pay check as a means to an end.

As procurement is not a mainstream profession (unlike finance, accounting, law, marketing or economics) it took months of research, following industry news and embarking on a Masters of Supply Chain Management before I made the leap to switch from a money markets dealer on the trading floor of a major Australian bank to being a junior burger again in the procurement world.

Some of the articles I came across at the time included procurement divisions literally saving struggling companies by negotiating better deals and contracts with their suppliers.

It became very clear that during the tumultuous times post-GFC, procurement functions were leaned upon to save companies’ backsides by reigning in corporate spend to make them profitable and stay afloat (Profit = Revenue – Costs. Through reducing the costs components of this equation, companies stayed afloat). This intrigued me immensely as it was prevalent in grocery stores, department stores, aviation, banks, pharmaceuticals, car manufacturing, telecommunications, hospitals etc.

What I was seeing was that this function called procurement was a critical part of organisations whenever the proverbial sh*t hit the fan. It also made me imagine what it would be like to work for a famous brand like Microsoft, Louis Vuitton, Walt Disney or Starbucks because procurement was seemingly in every organisation. My imagination went wild with the ‘what if’s’ and lead me to my path of further discovery and thirst for understanding more about procurement.

If you have just started in procurement or have stumbled upon this article in your quest to understand more about a career in procurement, then what I leave with you is the power of intent. The intent to forge a procurement career will create an inner drive of learning and ultimately succeeding in this field that far outweighs the three lettered qualifications from people who fall into procurement.

Just to put into perspective how far procurement reaches, everything needs to be bought, whether it’s the seat you sit on in a plane, the parts that go into a McLaren on the F1 track, or the food to stock the shelves at the supermarket. Everything has a price and in this profession it is the role of procurement to negotiate what that price looks like and the terms around it.

Run For Your Life! 4 Signs It’s Time To Quit

Is your career giving you the horrors? In this spooky Halloween-inspired article, Bennett Glace reveals the signs that you’re miserable at work, and what to do about it.

If you’ve ever seen a haunted house film, you’ve probably found yourself asking one question of the characters on-screen: Why don’t you just leave!? Unexplained sounds, cold spots, even disembodied voices – whatever the spooky happening, you can count on a horror movie’s protagonists to try and explain it away. It’s probably just the house settling, right?

We ask this question – with increasing intensity – because we’re confident we could never be so foolish. Surely, we’d recognize the telltale signs and pack our things right away. Blood dripping from the walls? Time to see about a hotel.

Though we shout these thoughts at the screen and use them to poke holes in cinematic logic, we rarely put them into practice in our professional lives. Last year, Mental Health America reported that nearly three quarters of Americans are unhappy in their jobs. A paltry 19% said they “rarely or never” think about quitting.

Everybody has bad days at the office. Like bumps in the night, they’re usually nothing to get too alarmed about. On certain occasions, however, things are as scary as they seem. Sometimes that voice telling you to run for the hills isn’t just in your head.

Here are four unmistakable signs that your job is haunting your life.

  1.  Workplace Culture is Toxic

You don’t have to enjoy lifelong friendships with your co-workers, but you shouldn’t dread interacting with them. Tyrannical leaders, incessant gossip, silos, and self-interest – it can all make the daily grind a terrifying affair. It’s usually easy enough to ignore a single toxic peer or take the necessary steps to address their behavior. In many cases, there are opportunities to exorcise any animosity and work together toward creating a more respectful, productive environment. When toxicity permeates the culture, however, it’s time to make like Daniel Kaluuya and get out.

  1. You’re Bored to Tears

We spend a third of every weekday at work. Shouldn’t we strive to spend this time doing something that challenges, excites, and inspires us? This year’s Gallup poll on employee engagement suggests very few of us (only 34%) do. Want to hear something really scary? That’s an all-time high. When you aren’t tuned-in, you’re not just wasting your own time and resources. The same poll estimates that disengaged employees cost American businesses between $450 and $550 billion dollars each year. If you spend most of your day wishing you were anywhere else, find somewhere else to go. Don’t wait around for dispassion to curdle into despair.

  1. You Have to Justify Your Job

Even the best haunted house movies tend to follow a predictable pattern. Bit by bit, ghosts and ghouls begin to wreak havoc. The victims, for their part, look for ways to explain away the hauntings. This often means emphatically reminding a supporting character how the old house isn’t really so bad. They’ll eventually learn they were mistaken, but this realization almost always comes too late. People sound pretty similar when they’re stuck in bad jobs. “Yes, the pay sucks. No, I don’t get along with my boss, but . . . ” whatever the excuse, looking for the bright side in a job you hate is like staying put in that haunted house because it’s got a big yard.

  1. There’s Nowhere to Go 

If, “Why don’t you just leave?” is the most popular question for horror skeptics, “Why are they running up the stairs?” is probably a close second. You don’t have to know Mike Meyers from Michael Meyers to recognize this trope. Pursued by an assailant, our hero decides to run deeper into their house rather than make a break for an exit. Here’s where horror movies and the professional world differ. Whatever you industry or experience level, everyone wants to ‘run upstairs’ professionally. Opportunity for growth is a major selling point for applicants and a major sticking point for unhappy employees. And advancement is much, much more than a new title or a bigger salary. It’s a sign that you’re valued and respected, that you’ve made a difference within an organization. Horror movies might recycle the same narratives again and again, but your work life shouldn’t.

Quitting your job isn’t a decision to make lightly. Where possible, do what you can to address your problems at work. Look for opportunities to clean up the cobwebs and soothe any unruly spirits. Burning sage won’t help, but sometimes a frank conversation is all it takes to make things right.

If your efforts come up short, don’t be afraid to make a break for it and write a sequel elsewhere. You’ll rest easier.


Bennett Glace is the primary contributor and Editorial Lead for the Strategic Sourceror. A prolific blogger and Procurement storyteller, he is responsible for advocating the function’s value in podcasts, whitepapers, and other impactful, accessible content.