I hope that you have enjoyed the article \u201cThe Vendor Performance Myth.\u201d<\/p>\n
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One area that I didn\u2019t have enough space to elaborate on in the article is the topic of the vendor\u2019s core competency. In all of my years in purchasing and supply management, I have seen so many problems arise because of buying a category from a vendor where that category is not the vendor\u2019s core competency.<\/p>\n
I know that when you have a good vendor, you want to funnel as much business as possible with that vendor. But just because a vendor is good in one category does not guarantee that vendor\u2019s success with other categories.<\/p>\n
That\u2019s so important, let me say it again: just because a vendor is good in one category does not guarantee that vendor\u2019s success with other categories.<\/p>\n
They may be an \u201cA\u201d vendor in Category 1 but a \u201cC\u201d player in Category 2. Your organization deserves better than C players.<\/p>\n
\u201cReduce the number of vendors.\u201d \u201cLeverage our spend.\u201d \u201cPartner with suppliers.\u201d These are all mantras that you may hear driven down from top management.<\/p>\n
And they are all good initiatives when they are applied correctly. Your job is to make sure that they are not applied incorrectly. As a purchasing and supply management specialist, your job is to educate others in your organization about the little nuances. Awarding non-core business to a vendor is such a nuance.<\/p>\n
Now, having said that, I believe in vendor development \u2013 working with vendors to develop new capabilities. However, vendor development needs to be applied appropriately.<\/p>\n
If there is a supply base with several highly capable and competitive vendors, then I do not feel that you will get much return on your investment in developing a vendor in that marketplace. Only in those situations where there aren\u2019t many capable vendors or you need strategic categories custom manufactured does vendor development give you the most bang for your buck.<\/p>\n
When I have more time, I hope to post some \u201cwar stories\u201d about how trying to consolidate spend with non-core vendors taught me a lot.<\/p>\n
Recommending Reading<\/strong><\/p>\n Purchasing Principles From The Stanley Cup Finals?<\/a> I hope that you have enjoyed the article \u201cThe Vendor […]<\/p>\n","protected":false},"author":12,"featured_media":4009,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n
\nBuyers\u2019 Big Frustration: Hidden Fees<\/a>
\nVendor Performance & Core Competencies<\/a>
\nServices Procurement: Why Is It More Challenging?<\/a>
\nWho Is Hatin\u2019 On Your Suppliers?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"