I have written previously about how recruiters are the first impression a candidate has of a company. Having thought a little longer about the deliberate impressions these talent acquisition folks can give about a company to external people, I have realised this applies equally to procurement.
As a procurement practitioner for the past fifteen years, I have seen the function grow up and grow in importance as leaders have recognised that cost control is one part of the profit equation which, adroitly managed, can have a real impact on the bottom line. Best in class corporations are even using this tactic to fend off activist shareholders, while their rivals struggle to catch up. But in a world where rapid innovation matters more than it´s ever mattered before, bargain basement prices and generous payment terms alone are no longer what companies want from many of their suppliers.
Firms are now also looking — in a quest for speed, competitive advantage, and a recognition that they may not have the ingredients for invention — for how suppliers can bring them innovation. And, ideally, not to their competitors. And it will be their procurement organisation, in most cases, that faces off to suppliers in this new context. For much of the time I have been in procurement, I have seen our function focus on price and the bottom right hand side of AT Kearney´s chessboard while largely ignoring the opportunities in the top right hand quadrant (because they are very hard to achieve and no one was asking for them…). And the face we have offered to our suppliers has often been a stern one, accompanied by our 300-page contract templates and our long RFP processes. Whilst these things have honest origins and intent, I would argue they have limited utility when what you want your supplier to see you favourably and as a prospective partner. Which is where a lot of companies now want to head.
Procurement can be a portal. Or a gatekeeper. The face we show to suppliers can bring them inside, or encourage them to knock next door instead. Just as there is an opportunity to consciously shape the messages a candidate gets about your company from your talent acquisition folks, so the procurement team can send a strong message about exactly how your company wants to interact with suppliers. If you´re looking for a relationship with your suppliers beyond commodity and price, think about that.