There are a few interesting differences between how a small-to-midsize business handles procurement and how a large business handles procurement. One of them is that large business procurement middle managers tend to be a little more paranoid about selecting small, less expensive suppliers.
There’s a lot of political pressure on a procurement middle manager in a large company. If they take a risk on a small supplier and it doesn’t work out, many of that manager’s peers will think “How could s/he have been dumb enough to go with that small, unknown supplier when we could have gone with the big boys?”
Unfortunately, this mindset prevents big companies from achieving all of the cost savings that are available to them. It reminds me of an old expression that produces that nails-on-the-chalkboard reaction from me: “Nobody ever was fired for buying IBM” or something like that.
Celebrity fashion has a parallel, believe it or not. Celebrities feel so much pressure to buy expensive clothes due to the fear of embarrasment that would overcome them if they were spotted in clothes that the rest of us wear (gasp!).
That being said, I was pleasantly surprised to come across the below video showing celebrities wearing some threads that are available in the malls that “the rest of us” shop at.
If celebrities can get over their fear of embarrassment by opening themselves up to a wider variety of sources (yet still making smart decisions), don’t ya think that procurement middle managers can do the same?
To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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