Fish are friends, not food.”
Data First ☝️
Creating Shared Value
Understand your position and power.
Within buyer-supplier relationships resides a power disposition, which places the buyer or procurement team in the driver’s seat.
Which path will you take at the fork in the road?
Though procurement and sourcing have the pleasure of being the selective party in a buyer-supplier relationship, suppliers can be selective as well. They choose their customers, and it’s best you didn’t forget!
“When the economy is going well, you might be able to dictate the supplier’s goods and services — and sometimes even the service delivery model. When times get tough (and they can very quickly), suppliers will typically reevaluate your organization’s needs to see whether they can continue service in a fiscally responsible manner. To secure suppliers’ attention in favorable and challenging economic conditions, your organization should establish collaborative and mutually productive partnerships with them” (cerasis 2015).
Buying power must be treated with respect and handled responsibly, keeping shareholder, brand, and supplier best interests in mind throughout the course of a buyer-supplier relationship. It takes 2 to trade, and trade should be utilized as a means of enhancing job-creation, standards of living, and economic growth at scale.
Remember this the next time you sit down at the negotiation table with a supplier. There’s an expert sitting on the other side that can equally impact your top-line value.
Suppliers are friends, not food.
Until next time.