Before I share the SDI article, here is a little bit of homework that demonstrates why broadly applied rules, principles, and technology are a problem that perpetually locks us in the Doom Loop of ProcureTech initiative failures:
REMEMBER: THE GENERALIZATION AND BLIND APPLICATION OF ANY PROCESS OR PROCURETECH SOLUTION STRATEGY IS A RECIPE FOR FAILURE!
CASE STUDY: ASK ME ABOUT A MAJOR US RETAILER WHO RATIONALIZED THEIR SUPPLY BASE FOR INDIRECT MRO SPEND, BELIEVING THAT THEY COULD NEGOTIATE VOLUME PURCHASING AND SIGNIFICANTLY REDUCE THEIR SUPPLY BASE ADMINISTRATION COSTS. WITHIN TWO YEARS THEY WERE PAYING ON AVERAGE 21% ABOVE THE GOING MARKET PRICE. RULE GENERALIZATION DOES NOT TAKE INTO ACCOUNT THE DIFFERENT COMMODITY CHARACTERISTICS, E.G., DYNAMIC FLUX VERSUS HISTORIC FLAT LINE.
AFTER 43 YEARS IN THIS INDUSTRY, I CAN SAY THIS “ONE THING” WITH GREAT CONFIDENCE: MAVERICK SPEND IS A SELF-INFLICTED MYTH WHEN BROADLY APPLIED ACROSS ALL SPEND – PTDA STATISTICS.
TODAY’S TAKEAWAY
Between this post and the one before it, Here we go again Jason Busch and Michael Lamoureux, you will discover the reasons why history will repeat itself, and ProcureTech initiative failures will continue well into the next decade.
30
Procurement Insights
Another Here We Go Again: This Time SDI Overgeneralizes Tail Spend Managenment And Automation
Posted on April 24, 2025
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Before I share the SDI article, here is a little bit of homework that demonstrates why broadly applied rules, principles, and technology are a problem that perpetually locks us in the Doom Loop of ProcureTech initiative failures:
REMEMBER: THE GENERALIZATION AND BLIND APPLICATION OF ANY PROCESS OR PROCURETECH SOLUTION STRATEGY IS A RECIPE FOR FAILURE!
CASE STUDY: ASK ME ABOUT A MAJOR US RETAILER WHO RATIONALIZED THEIR SUPPLY BASE FOR INDIRECT MRO SPEND, BELIEVING THAT THEY COULD NEGOTIATE VOLUME PURCHASING AND SIGNIFICANTLY REDUCE THEIR SUPPLY BASE ADMINISTRATION COSTS. WITHIN TWO YEARS THEY WERE PAYING ON AVERAGE 21% ABOVE THE GOING MARKET PRICE. RULE GENERALIZATION DOES NOT TAKE INTO ACCOUNT THE DIFFERENT COMMODITY CHARACTERISTICS, E.G., DYNAMIC FLUX VERSUS HISTORIC FLAT LINE.
AFTER 43 YEARS IN THIS INDUSTRY, I CAN SAY THIS “ONE THING” WITH GREAT CONFIDENCE: MAVERICK SPEND IS A SELF-INFLICTED MYTH WHEN BROADLY APPLIED ACROSS ALL SPEND – PTDA STATISTICS.
TODAY’S TAKEAWAY
Between this post and the one before it, Here we go again Jason Busch and Michael Lamoureux, you will discover the reasons why history will repeat itself, and ProcureTech initiative failures will continue well into the next decade.
30
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