I'm currently working with Tim Cummins of IACCM on content for an upcoming webinar entitled, "From Spend Management to Value Management" where we'll tackle the fine line that procurement must walk when it comes to outcome-based contracting. There is no doubt that procurement has delivered tremendous rigor in terms of the sourcing/procurement business processes. However, when it comes to optimizing business value, is driving for the lowest price always the best avenue to pursue? In an academic sense, most would say no, but do your organization's practices follow suit?
What is your response to these questions? Please share your thoughts on this thread.
1) How would you rank the following procurement objectives in contract negotiation - 1. driving price concessions, 2. building relationships and credibility with suppliers, 3. supplier success and solvency
2) Are your organization's actual practices in line with this ranking? Do the metrics used to measure success support this claim?
3) Overall, our trading partner relationships today are stronger, more collaborative, and mutually-beneficial than they were 24 months ago. (True or False)