Olympic Lessons: What is to be remembered?
Your Business and Procurement Strategy must be in line for the Short and Long Race…
In the Olympics, the strategy for swimming and running a short or long distance race is very different.
For example, Anthony Ervin—the 35-year old gold medal winner of the 50-meter freestyle—pushed his body to the limits, barely taking a breath, to touch the wall first.
On the other hand, Katie Ledecky—the 19-year-old gold medal winner of the 800-meter freestyle—didn’t even kick her legs for the first half of the swim because she was more worried about pacing herself to survive the grueling race.
Business and Procurement Strategy
Aligning your business goals with procurement !
While it is common practice to get a quick quote from a supplier, that may not be the best strategy for a successful relationship. You have to first consider if you’re signing a one-time deal or planning a long-term contract.
Depending on your end goals, you should adjust your business and procurement strategy
for the best possibility of success.
– Procurement Strategy for One-Time Deals
When signing a one-time supplier deal, just as in the Olympics, timing is most often vital.
You can worry less about what your relationship will be like with the supplier and more about the product and service they will deliver. You should be most concerned with:
- Turn Around Time: When time is critical, how quickly you can receive the product is of utmost importance.
- Responsiveness: How is the supplier’s communication? In a short-term relationship, you want a supplier who will respond to your requests promptly and accurately.
- Price: If you’re only planning to work with a supplier once, then price becomes all-important. Look for the best deal regarding quality and overall price.
– Procurement Strategy for Long-Term Contracts
When it comes to signing a long-term contract with a supplier, it’s important to take a partnership approach.
Your procurement strategy should be focused on creating a strong relationship with benefits on both sides. A few of the key areas to consider are:
- Risk Management: It’s vital that you know the risks associated with the supplier and what the company has done to mitigate those risks. The last thing you want is to choose a supplier who will be out of business during an emergency.
- Reliability: Talk to the suppliers past relationships to determine how reliable they are. Not just in terms of product quality but delivery, communication, service, and support.
- Quality: In a long-term supplier relationship, consistent quality is key. You can’t afford to have great quality one month and poor quality the next.
- Financial Security: It’s worth checking to see if your supplier has a strong enough cash flow to survive months or even years of work.
Don’t be tempted by sales pitches or the lowest price.
Are you ready to procure?