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Procurement / Business Strategy Strategy for creating a World-Class Procurement Organisation, Integration with Business Strategy and Planning.. Ability to influence the organisation's overall strategy. Selling the Procurement Business Case

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Old 10-02-2006, 07:49 AM
Supply Chain Guru
Join Date: Oct 2005
Posts: 42
David is on a distinguished road
Default Selling Procurement to the organisation

As procurement professionals we know how strategic procurement is to the organisation, and how much value we can bring. We can help increase sales, we can help increase asset utilisation, and naturally we can reduce cost.

Unfortunately, we seldom get the opportunity to do all this. Even more unfortunate is that even when we get the opportunity, we seldom get to share in the reward.

So how do we change this?

Like The Beasty Boys sang : You have to fight ...for the right party. And like my previous sales director use to say " Pick the fights you can win"!

Picking the fights you can win require that you have relevant information about your targer and the skill and knowledge to use this information to build a business case for procurement.

This business case is the plan that what will win the battle for procurement.

When planning a potential sale (in this case we sold high end supply chain solutions) we followed the following steps:
1) Targeting
2) Initial calls and qualification
3) Executive sponsor development
4) Value assessment and presentation
5) Negotiate and close
6) Account expansion

Seeing that procurement has to sell themselves to the organisation (procurement's clients) it make sence to follow a proven sales strategy.

So, even though you know who the client is (or not?), the steps are valid. Over the next few weeks I will be posting how I see this process can support procurement is selling themselves to the organisation, and sharing in the reward of a job wel done.

Next week we will look at targeting and initial calls and make this applicable to building a world class procurement organisation.

a) Identifying your in-house clients
b) Identifying the key stakeholders
c) High level value assessment
d) High level value presentation

David van der Walt
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Old 10-05-2006, 10:30 AM
Regular Member
Join Date: Sep 2006
South Africa
Posts: 30
Izak is on a distinguished road
Default Re: Selling Procurement to the organisation

Agree fully with you on these steps David. One that our company really puts a lot of ephasis on is your last point 'Account Expansion'. Anyone can get a deal with enough effort but not everyone can grow an account!
You have to really sell your/company very well through action and deliverables being delivered ahead of time and such. This makes you an intergral part of your solution and therefore puts you in the position to negotiate extra resources.
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Old 11-16-2006, 03:40 PM
Procurementtips Member
Join Date: Nov 2006
South Africa
Posts: 1
Tsepang is on a distinguished road
Default Re: Selling Procurement to the organisation

This is very interesing David. What you are simply saying is that its about time procurement sees itself as an independent structure within an organisation which structure the organisation can decide to eliminate and source externally. Procurement renders a service to the organisation and it should sell itself just like any service provider to the organisation. I look forward to your postings to learn more about the 'business case".
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