Strategic Sourcing & Stakeholder Resistance<\/h3><\/div><\/div><\/div>PurchTips edition #79<\/p>\n<\/div>
Will Stakeholders Undermine Your Sourcing Work?<\/h4><\/div><\/div><\/div>“You can sign a contract with whomever you want. But our division won’t use your supplier!”<\/p>\n
Have you ever heard this type of statement? Many strategic sourcing leaders have. Their work is a struggle.<\/p>\n
As a reaction to resistance, many strategic sourcing leaders seek ways to force business units to support their supplier selections. But the best practice for reducing maverick spending is proactively preventing resistance.<\/p>\n
How do you prevent resistance to strategic sourcing initiatives? You have to involve your stakeholders. And their involvement can’t be superficial – they must have input into key decisions throughout the sourcing process.<\/p>\n
To implement this best practice, simply plan on having stakeholders present when each of the following questions are answered within the sourcing process.<\/p>\n
\n- What are our specifications?<\/li>\n
- What are our supplier performance requirements?<\/li>\n
- What suppliers are we going to invite to bid?<\/li>\n
- How are suppliers differentiated and what is the measurable value of the differences between them?<\/li>\n
- What criteria are we going to use to evaluate proposals and suppliers?<\/li>\n
- What are the relative weightings of those criteria?<\/li>\n
- What hidden and tangential costs may we face that could distort our total cost of
\nownership calculation?<\/li>\n - What costs of poor performance might we incur?<\/li>\n
- Who makes the final supplier selection decision?<\/li>\n
- What is the process for dealing with poor performance from the selected supplier?<\/li>\n<\/ul>\n
Stakeholder suggestions may not always match the final decisions. These decisions will require collaborative internal negotiation. But using this best practice will help you avoid the “We won’t use that supplier!” threat.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/spsm_verify.jpg\" "\\"spsm_verify\\"")
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services.jpg\" "\\"services\\"")
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
PurchTips edition #79<\/p>\n<\/div>
Will Stakeholders Undermine Your Sourcing Work?<\/h4><\/div><\/div><\/div>“You can sign a contract with whomever you want. But our division won’t use your supplier!”<\/p>\n
Have you ever heard this type of statement? Many strategic sourcing leaders have. Their work is a struggle.<\/p>\n
As a reaction to resistance, many strategic sourcing leaders seek ways to force business units to support their supplier selections. But the best practice for reducing maverick spending is proactively preventing resistance.<\/p>\n
How do you prevent resistance to strategic sourcing initiatives? You have to involve your stakeholders. And their involvement can’t be superficial – they must have input into key decisions throughout the sourcing process.<\/p>\n
To implement this best practice, simply plan on having stakeholders present when each of the following questions are answered within the sourcing process.<\/p>\n
\n- What are our specifications?<\/li>\n
- What are our supplier performance requirements?<\/li>\n
- What suppliers are we going to invite to bid?<\/li>\n
- How are suppliers differentiated and what is the measurable value of the differences between them?<\/li>\n
- What criteria are we going to use to evaluate proposals and suppliers?<\/li>\n
- What are the relative weightings of those criteria?<\/li>\n
- What hidden and tangential costs may we face that could distort our total cost of
\nownership calculation?<\/li>\n - What costs of poor performance might we incur?<\/li>\n
- Who makes the final supplier selection decision?<\/li>\n
- What is the process for dealing with poor performance from the selected supplier?<\/li>\n<\/ul>\n
Stakeholder suggestions may not always match the final decisions. These decisions will require collaborative internal negotiation. But using this best practice will help you avoid the “We won’t use that supplier!” threat.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
“You can sign a contract with whomever you want. But our division won’t use your supplier!”<\/p>\n
Have you ever heard this type of statement? Many strategic sourcing leaders have. Their work is a struggle.<\/p>\n
As a reaction to resistance, many strategic sourcing leaders seek ways to force business units to support their supplier selections. But the best practice for reducing maverick spending is proactively preventing resistance.<\/p>\n
How do you prevent resistance to strategic sourcing initiatives? You have to involve your stakeholders. And their involvement can’t be superficial – they must have input into key decisions throughout the sourcing process.<\/p>\n
To implement this best practice, simply plan on having stakeholders present when each of the following questions are answered within the sourcing process.<\/p>\n
- \n
- What are our specifications?<\/li>\n
- What are our supplier performance requirements?<\/li>\n
- What suppliers are we going to invite to bid?<\/li>\n
- How are suppliers differentiated and what is the measurable value of the differences between them?<\/li>\n
- What criteria are we going to use to evaluate proposals and suppliers?<\/li>\n
- What are the relative weightings of those criteria?<\/li>\n
- What hidden and tangential costs may we face that could distort our total cost of
\nownership calculation?<\/li>\n - What costs of poor performance might we incur?<\/li>\n
- Who makes the final supplier selection decision?<\/li>\n
- What is the process for dealing with poor performance from the selected supplier?<\/li>\n<\/ul>\n
Stakeholder suggestions may not always match the final decisions. These decisions will require collaborative internal negotiation. But using this best practice will help you avoid the “We won’t use that supplier!” threat.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div>
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services-contracting.jpg\" "\\"services-contracting\\"")
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