I recently came across a very interesting post in the Nipendo P2P Narrative blog titled “What is supplier collaboration“.
What made it interesting – at least from my perspective, is that it zeros in on a simple yet powerful truth. You have to remove the barriers to collaboration before you can actually begin to well . . . collaborate with your suppliers.
“preserving the genius of Humans” to focus on where it’s really needed. Specifically the areas of strategic thinking, process design, and management by exception.
Specifically, making the transformation from “paper-based and manual processes into automated processes” that includes “the ability to streamline order fulfillment, eliminate errors, and dramatically reduce costs”.
Removing the thorn . . .
Being able to address process bottlenecks removes the proverbial thorn in buyer – supplier relationships that impedes productive collaboration. This is especially true in terms of being able to pay supplier invoices on a timely basis.
Perhaps this is the reason why so much attention is being given to industry news such as Washington’s recent announcement of the SupplierPays initiative, and the emergence of supply chain financing as a critical part of a sound procurement strategy.
In the end, an effective P2P platform is one that you do not have to think about because it virtually eliminates process issues, freeing you to focus on collaborating with your suppliers as opposed to solving transactional problems.
Being able to redirect your energies in this way, means that you can really make the move from being functional to strategic in your procurement practice.
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Procurement Insights 
Sigi Osagie
August 23, 2014
Great post Jon! You touch on several critical points that impact and reflect Procurement’s broader contribution to real organisational success. And, I wholeheartedly agree, these are areas we need to redirect more of our energies to.
My experience of revamping and leading Procurement functions, coupled with numerous discussions with professional colleagues and reviews of trade and online publications, indicates that the real barriers to collaboration lie in the perspectives and thinking habits of many of us in the Procurement trade. Quite often we’re influenced by shortsightedness from the top table.
When we can shift our perspectives and grasp the fundamental truth that suppliers are simply the external component of our own value chains, some clarity emerges.
The idea of viewing suppliers differently and managing the relationships more effectively is extremely critical. I explain this in more depth in my book, “Procurement Mojo – Strengthening the Function and Raising Its Profile”.
Of course, not all suppliers are deserving of a more collaborative engagement. But our ability to identify those that can truly help enhance our supply value offering is part and parcel of Procurement’s raison d’être. Such supplier relationships are integral to building a great ‘Procurement brand’.
A slick P2P process and paying suppliers on time helps. But I think a greater requirement to make the move to a more strategic Procurement practice is a change in underlying thinking attitudes.
Sigi Osagie
Author, “Procurement Mojo – Strengthening the Function and Raising Its Profile” – Visit http://www.procurementmojo.com to learn more.
piblogger
August 23, 2014
Thanks for the thoughtful response Sigi. If you could,please send me a copy of your book when it is available as I would be very happy to read and review it. Also, let me know your availability towards the end of September for a radio interview. – Jon