I just read the whitepaper: Five Ways Your Procurement Could Be Leaving Money On The Table.  The procurement items left on the table  are well defined. In fact, with the definitions provided no one could argue. Though most of us after reading the article would feel within themselves, ‘I knew that’; how many could list these before reading?

Within the spirit of the article, and in the example, is the theme that knowledge is power.  This has been true throughout history.  At Waterloo, Duke Wellington had a better knowledge of the lay of the land than Napoleon. Duke Wellington’s intel on condition, location, and plan of the Prussians was better, and Duke Wellington prevailed.

Today,  as we take on the supply chain battles, the need for accurate up to date info on the correct type of data is more important than ever. Now living in the information age, the information intellect is the difference. Within the white paper an example was given in which there was a clear winner based on who  had the best information. The loser was the supplier that had close to a monopoly on the market they supplied. This supplier  wanted to raise prices 50%. The winner was the consuming company. The consuming company had strong strategic information intelligence. They were armed with the accurate holistic information and strategies outlined in the white paper. As result, they made concession on items that did not matter in exchange for better terms on critical items.

In the spirit of political correctness, the win win concept is promoted. This was not a win win, but it is real world. A real world, where those who have adapted, those who have prepared, those who look beyond the immediate, prevail. 

The paper goes beyond just emphasizing the use of strategic procurement intellect for bargaining.  It speaks of Mastery as opposed to bargaining. Bargaining is conflict focused. Procurement information intellect, when understood and applied, will keep a company a step ahead with a flexible, quick reacting supply chain that is structurally sound without the need for adversarial conflicts, but true progress instead.

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Tags: Supply chain management, Supply chain visibility, Supply management
Posted in Supply chain management
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