Sole Source Situations: Eradicate Them!
By Charles Dominick, SPSM, SPSM2, SPSM3
How Can You Prevent Sole Source Situations?
Negotiating with a sole source supplier is arguably the most difficult situation for a procurement professional. Therefore, it's important to know how to prevent sole source situations from happening in the first place.
So, how do you prevent sole source situations? "The first step is actually just communication: letting the Engineering community understand that the more specific they become with a specification, the harder it is for Procurement to drive value for the overall end product and the end user," according to Jim Nelles, partner with Roland Berger Strategy Consultants.
If such collaboration isn't welcomed in an organization with a politically strong engineering department, Nelles suggests getting the best possible quote for the product or service as specified, then running "a parallel process by which you get quotes for the exact or similar performing substitute that you then can go back and present to the group." Though this approach can help on a one-off basis, the longer-term goal of Procurement should be to secure a permanent role on the design team ensuring early involvement in future designs.
Do You Want a More Rewarding Procurement Career?
Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.
Earning your SPSM® Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!
Need Better Performance From Your Procurement Team?
Are you a procurement leader whose team isn't achieving the results you know are possible? Maybe it's not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.
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