Honestly, talking with such people always makes some mindshift. And I am greatful to Future Procurement for the opportunity to interview such knowledgable and experienced Procurement professionals!
In this blog post I want to elaborate on six important words that I have taken away from our discussion with Francisco this time!
Value and Waste
Make sure you understand the needs of the final consumer of the product. Because understanding that is a key for defining your optimal Supply Chain parameters.
There is a huge amount of operations, production and logistic units, contractors and subcontractors involved in any Supply Chain. And obviously only few of those operations are really adding value for the final consumer. If the operation or process doesn’t add value for the final consumer of the goods – then we can define it as Waste! And we should strive to avoid it or to decrease this waste as much as possible!
You would be surprised after you will make the proper analyze of your supply chain processes: You will most likely see that it’s less than 10% of all operations from raw material to the final product are really adding value forza final consumer.
Synergy and Cooperation
Investigate the opportunity to had the cooperation with companies, which are not your direct competitors but maybe have the similar needs.
Maybe you would be able to purchase together. And by these combining your purchase power and negotiation power. If they are not your direct competitors – why not to combine your volumes? Or making these deliveries faster? Raising the quality standards? Or whatever else is needed for you?..
This is the direction of 21st century we see in many areas of business. Instead of being isolated – make your business more opened for new Cooperation opportunities. Don’t only hide and protect yourself! Because there are a lot of synergies which you can potentially use for your benefit… And for the benefit of other parties!
Empathy and Communication
Start with understanding your company’s needs. Try to understand deeper all the aspects of the things you need to purchase:
- technical requirements;
- volumes and seasonality;
- lead time requirements;
- critical product and components;
And after you have understood your real needs – communicate them. What Francisco means here is that you should structure your needs in a good and simple way and communicate that to the market. When Market players know your requirements and needs good enough – your quotations, tenders and even your spot-buys will go much smoother and faster!
P.S. Find Francisco Comino Ramos in LinkedIn
P.P.S. And don’t forget to listen to the full interview!
Procurement expert and coach at Future Procurement
You can learn more about Procurement and Supply Chain Management at our web-site www.futureprocurement.net