Strategic Procurement Doesn't Mean Being In The Supplier's Bag For A Long Time
At best the word gives the feeling of something is going to be expensive or that the person talking about it is an important person. At worst the word could suggest doing something for a long term or having a very long term relationship with the supplier.
Let's try to clarify.
Adding the word "strategic" to any function or activity must surly mean that we are thinking about this subject with a "whole Brain" mentality as oppose to "right Brain" tactical mentality.
To go a bit deeper, a Whole Brain approach or strategic approach is essentially an Introspection process going inside our heads to analyse the consequence of our action, And see the outcome objectively before the action takes place.
On the other hand, the Right Brain approach or the tactical approach is a sub-conscious driven or a spontaneous reaction devoid of any real introspection or analysis before an action is committed.
We just sometimes confuse thinking with whole brain activities, where thinking itself has been proved to be conducted unconsciously.
Enough of this mambo jumbo philosophy and let me give you an examples.
A "smart" buyer (and this is real by the way), fan of cheap sourcing made a "fantastic deal" buying a large quantities of batteries at an incredible price for his company to sell.
He bought a four years supply at a 70% discount. What this "smart" buyer didn't introspect about was the shelf life of the batteries, was only two years. What a deal you may say.
A "whole brain" or a strategic approach to this simple deal making would go about this in an entirely different way.
Any analysis and introspection before hand would clearly identify the issues and lead the buyer instead of getting excited about the great discount to making a Long term Frame work Agreement with the supplier.
This strategic contract will guarantee the price, the discount, continuity of supply and the freshness of the product at all times.
It is important to mention that "thinking" or unconsciously acting is not a bad thing, because if you do a "strategic" road crossing you will certainly be hit by a car before you finish your analysis.
It is just important to point out that when we say strategic procurement, strategic negotiation or strategic anything that our tactics and actions in any situation are guided by an overall objectives, mission or a grand strategy and that we introspect rather than simply react before plunging into action.
I will leave you with this great quote:
"Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat." Sun Tzu the Art of War
Related Tags: negotiation, strategy, purchasing, stratgeic procurement
Osama El-Kadi is a negotiation expert & motivational speaker. Specializes in utilising Sun Tzu Art of War negotiation strategies in a unique and advanced strategic negotiation consulting, seminars, workshops and training for sales and buying organisations worldwide.
Born 1955 in Manchester England Osama graduated in 1978 with a BSC in Economics followed by an MA in International Business from Alexandria University. Osama El-Kadi career spans 28 years within UK based blue chip corporate companies. Starting from a Computer Analyst Programmer at NCR, to Chief Architect for worldwide banking systems, to Sales Director for CAI Europe, to General Manager Technology at the House of Fraser Group (including Harrods), to managing group procurement functions for the Automobile Association (the AA) through to his most recent position as Chief Procurement Officer in the Centrica Plc group of companies in the United Kingdom.
Negotiation Strategies and the Art of War.
Negotiation Expert & Motivational Speaker
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- The No. 1 Rule For Projecting Confidence - Speak With Authority
One of the most important characteristics a person can project in a business setting - or any situat - After the Autumn Checkout European Debt Crisis and U.S. Brewing Rebound
In the commotion caused by the Fed on interest rates come to an end, the "disastrous" for the euro a - Advantages Of Arcade Game Rentals
There are many different advantages to arcade game rentals. Most people need something to release th - A General Primer on Truck Cargo Nets
In modern highways it is quite rare to see truck cargo nets in action, this is because they are usua - The United States Will Burst More Severe Financial Crisis
Not long ago, suddenly announced that the central bank to raise interest rates, the interest rate hi - Niche Marketing Profits - 3 Easy Steps to Finding a Profitable Niche Market Income in 10 Minutes
Like most beginners I was having a very difficult time trying to find a niche market to earn extra m - The Importance of Hospitality Management Consulting Firms Toronto
Businesses and the managers that help guide any business are in a constant state of improvement and - New Keynesian Theory Label
2010 winner of the Nobel Prize in Economics three theories have been labeled as "New Keynesian" labe - Federal Reserve Pouring Money QE2 Unpredictable Fortune
U.S. economist Milton Friedman proposed a "throw the cash from a helicopter" view, while the practic - Fiscal Consolidation Should no Longer Delay
British Chancellor of the Exchequer George Osborne today announced fiscal consolidation policy, shoc
Most viewed articles in this category:
- Common Financial Problems to Avoid
One must first change their habits and not procrastinate. American Consultants Inc at offers key fi - How a Bad Hire Can Hurt Your Business
What's worse - hiring the wrong person or not hiring anyone at all? Companies can become almost des - Joel Comm Is Dr. Adsense
What is Adsense? If you are new to making money online and net marketing, you may not know what Ads - 5 Steps For A Dynamic Wealth System Online
Recipe: Opportunity + knowledge + Dynamic Wealth System + Your Action = Massive Success!!! Step 1 - How To Stop Foreclosure
Losing your house to a foreclosure can be very scary. There are times when circumstances are ou - How to Always Pitch A Strike
As business owners, we are always working on new ways to convince people to become customers, client - Membrane Diffuser Solutions for Wastewater Treatment Systems
In the aeration basin of a typical wastewater treatment plant there are both organic and inorganic m - Another Year Hating Your Job or Loving Life?
Copyright © 2007 Mary Foley I've come to the conclusion that to be successful - really successf - Dyestuff Industry In India And China
World demand for dyes and organic pigments to touch $10.6 billion in 2008According to a study on dye - Cma-cgm Case : the Series of Lawsuits Continues in Syria, Lebanon, Egypt, France, England and the United States
Damietta company case : The series of lawsuits continues in Syria, Lebanon, Egypt, France, England a