PurchTips - Edition # 208

 

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The 4 Worst Procurement Myths

By Charles Dominick, SPSM, SPSM2, SPSM3

Do You Believe These Common Procurement Myths?

Myth #1: More specific specifications are always better. When all suppliers bid on the same exact requirements, you get the assurance of an equitable or "apples-to-apples" comparison and the ability to use fewer variables when comparing suppliers. While that's good in some situations, overly restrictive specs may keep you from capitalizing on the strengths of suppliers whose capabilities can offer more profitable options.

Myth #2: Total cost of ownership (TCO) analysis is always the best method on which to base a supplier selection. TCO analysis is indeed a very useful practice. However, when different supplier offerings can deliver different value to your organization in the form of things like higher revenue opportunities, TCO analysis may not lead to the most profitable decision. Total Value Management may be a more appropriate method.

Myth #3: Privately-held suppliers will never share their financial statements. Many privately-held suppliers do resist sharing financials with prospects. However, making the disclosure of financial statements a condition of awarding business and being willing to make accommodations - such as signing a non-disclosure agreement and limiting access to the statements - can convince suppliers to share financials.

Myth #4: Long-term contracts should always begin immediately after a sourcing process. While customary to award a long-term contract after reviewing a proposal and negotiating, a supplier selection that seemed smart "on paper" can be disappointing in reality, leaving you stuck trying to make it work because you've made a long-term commitment. When you structure your sourcing process to include a short trial period, if the most attractive bidder fails to perform, you can explore the next alternative. I call this practice "dating suppliers before marrying them."

For a fifth myth, go to http://tinyurl.com/28dxyy9

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Spotlight On Professional Development Opportunities

SPSM Certification

Are you tired of not getting enough opportunities, respect, and money out of your purchasing career? Well, guess what? Nothing will change unless you take action towards becoming a world-class purchasing professional.

You see, today's employers refuse to reward employees for yesterday's skills.They demand that purchasing professionals like you use the most modern skills and achieve unprecedented results. They want you to save more money, achieve better operational performance, and reduce risk.

Is lacking a purchasing certification keeping you from getting the results, opportunities, respect, and money that you want out of your career? Today's employers refuse to reward employees for yesterday's skills. They want you to save more money, achieve better operational performance, and reduce risk. They demand that purchasing professionals like you achieve unprecedented results and without the most modern skills that can be a challenging feat!

So how can you acquire the most modern skills, achieve meaningful results, and convincingly prove your capabilities to today's employers? There is an impressive purchasing certification program that will teach you what you need to accomplish all of this and more. It is the SPSM® Certification, earned by completing the Senior Professional in Supply Management® Program. And you could earn it in less than a year - maybe even much less than a year!

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) (with the option of getting a Study Guide on an iPad) at:

Distinguishing yourself as an achiever in purchasing is key to sustaining a rewarding career, even in these difficult economic times. Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) at:

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices  into your organization and achieve your career potential. And if you sign up for the Senior Professional in Supply Management® Program on or before May 31, 2008, SPSMSM Certification Program on or before 4/30/2007, you also get these and other bonuses valued at over $700:

  • FREE $30 gift certificate to Amazon.com!
  • FREE CD-ROM with printer-friendly versions of the class materials!
  • FREE Purchasing Performance Measurement spreadsheet template!
  • FREE audio CD about purchasing job security!

To learn how to earn your SPSM® Certification and get these valuable bonuses, visit:

Earning your Senior Professional in Supply Management® (SPSM) Certification is the action to takeif you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSMSM Certification at:

Learn how to earn your SPSM® Certification at:

www.NextLevelPurchasing.com/spsm.html

The Latest Purchasing News!

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Free Procurement Training & Certification Starter Kit

This Starter Kit gives procurement professionals like you a clear idea on what it will take to become certified. You'll get an excellent feel for what you will need to learn and how long it will take.

Click here to learn more

Included in your free Starter Kit:

  • Access to two lessons from courses that are part of the Senior Professional in Supply Management® Program
  • A Certification & Training Planning Template
  • Case studies
  • A free Basic Membership in the NLPA

Together, these materials will help you decide how well the SPSM® Certification can help you achieve your career goals.

So, what are you waiting for? Begin your pursuit of a more rewarding procurement career – get your Procurement Training & Certification Starter Kit now by signing up for a free NLPA Basic Membership!

If you are already a member of the NLPA, click here to login and visit the "Starter Kit" tab to access these resources.