Today, I am going to continue on a series of posts I started last week in which I began providing a deeper explanation of some of the bullet points from Next Level Purchasing\u2019s 20-Point Proposal Evaluation Checklist. In this post, I\u2019ll be digging into the line item labeled \u201cDid the supplier offer value creating or cost saving ideas?\u201d<\/p>\n
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Procurement professionals have been accused of focusing on price and not recognizing differences in supplier offerings. Sometimes, this is a supplier\u2019s shallow, last-ditch attempt to win the business. Other times, it is absolutely spot-on. To make sure that you understand the value (i.e., opportunity for higher profits) that your supply base can deliver, always ask for value creating or cost savings ideas.<\/p>\n
And that is just a first step. It disappoints me that procurement professionals go as far as asking for such ideas, but then do nothing when they receive them. In many instances, there are profit-improving opportunities placed literally right under their noses that they ignore. Sure, some of these supplier ideas would be time consuming and costly to implement and may be a distraction from more mission-critical projects, but some can be implemented relatively easily and the financial benefits would be measurable.<\/p>\n
Are you requesting \u2013 and using \u2013 ideas from your suppliers?<\/p>\n
I sure hope so.<\/p>\n","protected":false},"excerpt":{"rendered":"
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