Know your key procurement customers and their roles

| 0 Comments
Douglas MacGregor.JPGOrganisations may have targeted certain industries, markets or regions as a customer base, but have they thought of the roles within the organisations they are targeting? One area a lot of companies overlook is the dynamics of the purchasing process within their target market, Douglas MacGregor of SuppDex tells SmartProcurement.

To save costs and smooth processes many companies implement strict procurement and supply chain policies and procedures meaning the procurement or supply chain managers are increasing their influence. Increasingly, procurement and supply chain functions are being represented at board room level in companies, so ignore their needs at your peril.

Supply Chain & Procurement are your customers. Understand their needs

Gone are the days when the cheapest price won and the procurement manager was a feared demi god forcing suppliers to cut prices to the bone. A good procurement professional does not look at price as being the one and only criteria. Cheap often equates to nasty and often costs an organisation more in the long run.

“During 11 years of auditing customer/supplier relationships, I have undertaken thousands of face-to-face interviews and 99% of executives interviewed do not want the cheapest price. They are happy with a supplier charging a fair competitive price as they realise other things are more important,” says MacGregor.

To illustrate, a company may have an outstanding top of the range quality product, however if it cannot be reliably delivered on time this could cost the procuring company in the long run. Think about the cost implications of a stopped production line because a vital component is out of stock. Often a standard quality product delivered on time is preferred as it ensures the company’s processes are efficient.

Similarly, a supplier that has a bad reputation for making it difficult to claim on its warranties and guarantees, or not having appropriate skills and knowledge in house (even though the price is cheap), or is slightly unethical in its dealings. These could lead to the overall degradation of the procuring company’s processes making the company less efficient.

MacGregor advises evaluating a supplier company from the perspective of a procurement and supply chain professional.

“An assessment of a supplier company should rate its performance with its existing customers. Leopards don’t change their spots, so if a supplier treats its existing customers badly, it will probably treat you badly as well.

SuppDex developed a survey in conjunction with procurement professionals. They were asked what they wanted from a supplier that would make their companies more efficient and their requirements were consolidated into seven core areas. SuppDex developed a questionnaire around these seven core areas so a supplier’s performance could be assessed.

For more information on assessing prospective suppliers email Douglas MacGregor on douglasm@SuppDex.com

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R 800 000 - R 900 000 ...More