Becoming a Buyer was what one did when all other career opportunities had been explored. The role was beefed up somewhat when they rebranded as ‘Purchasing’ but they were still only delivering other people’s plans. Recessionary pressures require extreme actions and modern Procurement was born. If you go into your meeting unprepared, you will lose your shirt. These tips will help you survive against modern procurement.
- Procurement requires a lot of selling skills
You’re the sales person, right? True but so is the procurement manager sitting in front of you. They have to ‘sell’ their vision of their company as a customer of yours. Growth predictions, capital investment and acquisitions are just some of the ways procurement sells themselves. My advice? Get any grand visions quantified. What does it mean to me?
- Procurement are an educated lot
Hands up if you are in sales and have a formal qualification in the subject. No, your green badge for swimming a width doesn’t count!
About two thirds of UK procurement professional have a formal qualification in the subject. They have all the tools and techniques to make your life very difficult.
If I were you I would join some procurement training courses in order to learn about your competition.
- Control Freaks
The mantra goes ‘know, understand and control’. It’s easy to know what is being spent, understanding takes a little longer but then comes the control. Good Procurement is supportive of business efforts but also rules spending with a firm hand. There’s little chance of ‘backdoor selling’ to other people in the organisation.
To compete you also need to understand what your product/service means to your customer. This has to be both qualitative and quantitative. What would happen to their business if you stopped supply?
I was running trial at a paper mill some time ago and an operator came up to me and said “your product smells nicer than our current binder”. It’s little nuggets like this that will help you build up your value proposition.
- Careless Whispers
Good Procurement manages the flow of information you will receive. They shouldn’t lie or even bluff but they will only tell you what they want you to know. Corroborate everything.
- They have targets too
Usually savings or cost-avoidance related. Could be payment terms or supplier number reductions. You need to find out what drives individuals in procurement and make yourself their supporter.
Shortly after I moved into Procurement a supplier came to see me and asked for a price increase. “What do you think this will do for my reputation if I have to announce a price increase a few days after moving into this job?”
The increase was never mentioned again.
Meet with your own procurement colleagues. Sit in some of their supplier meetings. Immerse yourself in procurement and become a better seller!