July 19

Episode 040 – Procurement = Service Provider?

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Today, I am going to cover, why I think, procurement is a service provider.

Episode Highlights

  • So why do I keep talking about clients, when I mean demand owners?
  • How can I speak of products, like in our last three sessions, when I mean demands?
  • Because I strongly believe, that Procurement is an internal service provider
  • Our demands owners, our approvers, yes, they are our clients
  • But what does that actually mean?
  • First and foremost I think procurement must sell its services
  • It also needs to market them
  • You have to delivery proof that involving procurement makes sense from several perspectives
  • the demand owners perspective - it is your duty to deliver the best TCO
  • management - they may not know it, but it is our duty to keep processes as lean as possible
    • while still enabling goal number one for our stakeholders as mentioned above
  • our own procurement organization: we have the duty to provide transparency
    • what money goes where?
  • the times in which we simply hit everyone and their mother over their head with our policy are over
  • the procurment policy - if you have one - is not an instrument of early involvement
  • it is the overall reason why we're here. It puts in writing why it makes sense to talk to us
  • A good procurement policy speaks of cooperation rather than penalties for not complying
  • cross functional teams is a term that should be mentioned regularly in such a policy
  • but the way we deal with projects, the way we market our successes is at the end, what makes people want to work with us
  • does that mean, that you have to approve everything, just to make your customer happy?
  • no way.
  • we procurement people are experts in our markets and experts in negotiations
  • this expertise is what gives us the right to say no as well
  • the right to refuse certain kind of behavior
  • but this right - as mentioned initially - comes with a duty.
  • the duty to fulfill our customers needs

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