Research suggests that as much as 70% of revenue goes out to external suppliers on an annual basis, and this spend is spread across hundreds of different functions.
The reality is that the solutions your company needs to grow, are found outside of your organisation and are not directly related to the manufacture of the products you sell.
How well you select your suppliers will often determine how successful you are when executing your growth strategy.
When engaging with potential new suppliers, your selection process will highlight challenges that are specific to your way of doing business as many stakeholders will wish to bring in their preferred supplier, data, people and process to do things in the right way, on time and at the best price.
All these suppliers then need to be managed on an ongoing basis which puts pressure on the people involved.
Cracking these challenges could boost a career and alter the landscape of your business.
You just need to find the right people for the right areas.
Modern company leadership will focus most of its attention on staff, yet suppliers, who take upward of 70% of annual revenue receive little attention even though growth is dependent on the services they provide.
Technology innovation needs to be optimised to enable companies to be at the forefront of industry, this is how corporate objectives are driven, how communications are delivered, how risk is minimised and compliance is assured.
IT Procurement is usually executed by either an IT Manager or a small team, who are under resourced and have other critical tasks to be addressed.
In many cases these procurement people do not have the resources or the training to manage multiple suppliers.
IT Procurement is really a difficult job and invariably the people involved concentrate on delivering a measurable benefit – Getting the Best Price from suppliers, who are the very people who help the company execute their growth strategy, thus turning the skill of “Procurement” into just “buying”.
This error in judgement can often be a wasted opportunity as the great level of knowledge lying within a supplier can be missed.
Want to know more? Why not download our latest IT Procurement eBook.