Collaboration with Stakeholders is Critical for Procurement Success

Gone are the days when we worked on procurement projects by ourselves.  Collaboration with internal stakeholders is critical for a number of reasons.

·      Alignment. Collaboration  is critical in because it strengthens the alignment between procurement objectives and broader organizational goals, leading to more effective and efficient outcomes.  The feeling is more of a shared goal and results in far more cooperation with internal customers and also helps prioritize the work.  This often begins by procurement understanding the organization’s key goals and objectives and then enlisting clients to participate on project teams to meet the organization’s sourcing needs.  And that alignment almost comes readymade when the organization sets spend reduction targets as part of the annual budget process.

·      Subject Matter Expertise. While it’s great to have your team knowledgeable and conversant in the subject matter, it is not always possible or practical.  Stakeholders often bring deep subject matter knowledge to the team, ensuring that the specifications are properly set, providing valuable insights on relevant industries and suggesting suppliers to consider that might not be on the radar screen of procurement. We still provide the framework and process for sourcing but they become an invaluable partner.     

·      Trust and Transparency.  Working on the project together, fosters trust and transparency.  Your internal stakeholders become more knowledgeable about your processes, timeline’s and how the various suppliers might meet their needs.  The developing trust and positive experiences working with procurement elevates procurement to a strategic partner encourages the client  to reach out for their future sourcing needs.  I can recall a difficult experience working with R&D where they didn’t think that we should be involved in the business.  But by working with them to problem solve and bringing the appropriate suppliers to the table for them to consider, we gained their trust and met their needs.  That same client came to rely on us and always included us when they knew that they needed help finding a critical supplier.

·      Improved Efficiency.  Working closely with your internal clients allows you to brainstorm potential solutions upfront and eliminate backtracking. Everyone works to the agreed upon plan and understands expected deliverables and timelines.  How many times have you had your project delayed or derailed because a key stakeholder was either unaware and not in agreement with key elements of the project?

Involving stakeholders right from the beginning and openly communicating goes a long way to building trust and strengthening relationships. I always maintained that we provided the business with realistic options and never picked suppliers for the business.  But by agreeing on selection criteria, we very seldom disagreed on which supplier best met our needs.  Procurement became more of a strategic partner in the business and a valuable and trusted resource to achieving organization goals and objectives.