Procurement and Supply Chain Management (PSCM) Institute’s Post

Omid G's latest Negotiation Training Blog is here. "The Wrong People Are Getting Recognized in Procurement". https://lnkd.in/gwq3N8K5 . Please like, share, comment, and subscribe. Thank you! #purchasing #procurement #negotiation #purchasingtraining #procurementtraining #negotiationtraining

I wanted to share a few do nots with procurement people... we all hear about best practice and what to do ... lets share experience and what not to do ... 1. Avoid any situation where personal interests conflict with their duties. This includes accepting gifts, bribes, or favors from suppliers. If you cant give then dont receive. 2. Skip proper due diligence on vendors, such as background checks, financial assessments, and performance evaluations, this can lead to selecting unreliable or unqualified suppliers. 3. Avoid lack of transparency in procurement processes as this can lead to suspicions of favoritism or corruption. It's essential to maintain clear and transparent procedures throughout the procurement lifecycle. 4. Don't adhere to legal and regulatory requirements, such as procurement laws, policies, and procedures, can result in legal liabilities, penalties, and reputational damage. 5. Once contracts are awarded, it's crucial to actively manage them throughout their lifecycle. Ignoring contract management can lead to cost overruns, missed deliverables, and disputes. 6. Rushing through the procurement process can result in errors, oversights, and suboptimal decisions. It's important to allocate sufficient time for planning, evaluation, and negotiation. 7. Competitive bidding helps ensure fairness and value for money in procurement. Bypassing competitive processes without valid reasons can raise concerns about favoritism and restrict opportunities for other suppliers. 8. Effective communication with stakeholders, including vendors, internal teams, and management, is essential for successful procurement outcomes. Failure to communicate can lead to misunderstandings, delays, and dissatisfaction. Dont go it alone it will always come back to bite you. 9. Procurement should be viewed as an evolving function that can benefit from continuous improvement efforts. Failing to assess and refine procurement processes over time can result in inefficiencies and missed opportunities for optimization Hope that these help as we are teaching these in https://lnkd.in/gcr948sc

Transparency and Trust in Procurement Transparency and trust are the cornerstones of a successful procurement process. When procurement activities are transparent, all stakeholders are informed about the selection criteria, evaluation process, and contract awards. This openness builds trust among all parties involved. Transparency also ensures accountability, allowing for scrutiny and oversight, which helps prevent fraud and unethical behavior. Trust is equally vital, fostering positive relationships between buyers and suppliers. When trust is present, suppliers are more likely to deliver quality products and services, knowing their efforts will be fairly recognized and rewarded. Moreover, trust leads to long-term partnerships and collaborations, where buyers and suppliers can rely on each other to meet obligations and achieve mutual benefits. This cooperation and communication result in better outcomes for everyone involved. In summary, prioritizing transparency and trust in procurement promotes a fair and efficient process, strengthens relationships, and enhances collaboration. By embracing these values, organizations can ensure the success and integrity of their procurement activities.

What’s your understanding of contracts? For me, they’re not just legal terms or signatures from both parties—they’re the backbone of trust and collaboration. When I draft a contract with a clear scope of work and well-defined responsibilities, it ensures that both parties are aligned and committed to fulfilling their obligations. How do you view contracts in your work? Procurement Leaders | A World 50 Group Community Procurement & Supply Chain LIVE Procurement #ProcurementExcellence #Contracts #SupplierRelationships #procurement

Empower Your Procurement Strategy! "In procurement, as in life, the outcomes often depend not on what we wish for, but on our skills at the negotiating table. Remember, you don’t just get what you want, you get what you negotiate. Let's discuss the best negotiation techniques that have worked for you! #ProcurementSuccess #NegotiationSkills" #qotd

Negotiation in Procurement: A Path to Value or a Risk to Transparency? Is negotiation in procurement truly beneficial, or does it compromise fairness and transparency? While negotiation can deliver cost savings and foster strong supplier relationships, it also raises concerns about transparency, particularly in public procurement. A well-structured process can ensure value for money, but without proper guidelines, negotiation may risk favouritism or compromise competitive principles. Benefits of Negotiation: Cost savings Improved quality, service, and flexibility Strengthening supplier relationships Challenges: Transparency issues in closed-door discussions Erosion of competition Risk of accepting Abnormally Low Bids (ALBs) Ensuring Transparency: Use of data-driven decision-making Involvement of cross-functional teams Clear post-negotiation audits Ultimately, negotiation can drive value in procurement if governed by strict transparency measures. Let's ensure that negotiation strengthens, not weakens, the principles of fairness and value for money. What do you think? Can negotiation be a transparent tool, or is it too risky? Share your insights below! #Procurement #Negotiation #ValueForMoney #Transparency #PublicProcurement #SupplyChain

Our founder's hot-take for today! Are procurement professionals deserving of bonuses too? 👇 Let's talk about something that needs to change in procurement: bonuses based on savings. Why? It’s a dangerous game. It’s a bad incentive only for short-term thinking and can harm our suppliers. When the power is already in the buyer’s hands, pushing for more savings adds to the imbalance. Procurement should be about building strong, long-lasting relationships, not just cutting costs. We need to rethink how we reward procurement professionals, focusing on the value they bring, not just the savings. Let’s move away from harmful incentives and focus on sustainable success. What do you think?👇

Did you know? The procurement professionals are the unsung heroes of the corporate world? They're responsible for negotiating better contracts, obtaining lower prices, ensuring the quality of goods or services delivered,and analyzing contracts. And, they're not just number crunchers - they're also problem solvers, strategists, and sometimes even musicians So, the next time you see a procurement manager, remember they're not just shopping for a living, they're building the foundation of your business #procurement #procurementprotagonist #procurementfunfacts"

Common Procurement Mistakes to Avoid: 1) Insufficient planning Set clear objectives and goals 2) Failing to understand the market Do your research and market analysis 3) Lack of transparency and communication Be clear with your suppliers and stakeholders 4) Too much focus on cost savings Consider value, not just cost 5) Poor contract management Implement robust contract management processes Don't let these mistakes cost you time and money and jeopardize your procurement success. Avoid them by implementing proper processes, communication, planning, and analysis, and you'll see the benefits in your organization's bottom line.

The procurement profession has come a long way, evolving from a purely transactional role into a strategy focused one that drives value across organizations. One has to ask, are companies truly investing enough to develop their procurement teams to meet the demands of our rapidly changing world? Many companies are not looking at things with a global lens, in that their teams are not prepared to run procurements and negotiate with foreign suppliers. This can lead to increased challenges with culture and language barriers, and understanding foreign laws and policies. Internally, teams need to have solid relationship management and a sound understanding of how their organization works. It is not enough to know how to run a procurement process, as the success of a procurement heavily relies on communication clear requirements and outcomes to the market. The ability to build and maintain strong relationships is at the heart of successful procurement. More than just securing deals, it's about fostering partnerships that create long-term value. Companies that don't invest into the development of their procurement teams, haven't solidified fulsome and diverse business partnerships that set them up for success.