Four Reasons Why Procurement Cannot Afford to Ignore Vendor Management
Guest Blog: Procurement Leaders welcomes the thoughts and insights of SpendHQ.
SpendHQ was invited to contribute an article for Procurement Leaders, a global membership network serving senior procurement and supply chain executives with independent procurement intelligence.
As a procurement leader, it is important to ask the following questions: What do I know about our suppliers? What should I know that I don’t?
Most businesses can tell you anything you want to know about their customers. Not only do companies know who their customers are, organizations also know their clients’ wants and needs, purchasing patterns, risks and priorities, contract terms and committed service levels. Businesses are expected to know what a customer pays versus what they are supposed to pay, as well as which type of customer will pay more for specific items and those that will pay less. To put it simply, they understand the detailed financial implications of a change in any customer relationship.
However, these same businesses rarely put the same level of emphasis on understanding their suppliers and many struggle to identify their most strategic relationships. Other than a handful of core vendors, they cannot tell you who their preferred suppliers who have actual contracts in place are compared with those not under contract. Yet understanding this impact is critical. Click here to learn the four main reasons why procurement should not ignore vendor management.
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