It’s something that people have been saying for a long time, and as digital networks become increasingly potent, so too does the concept of dynamic and collaborative procurement.
Historically it has been said that it’s not what you know; it’s who you know.
Well now it’s about people who know people you know. Between LinkedIn and social media, it’s more possible than ever to find second and third tier connections within minutes, and it’s something that buyers and sellers are increasingly relying on. And with good reason; it can provide great opportunities while minimizing costs.
Taking this a step further however, and initiating your own collaborative networks and partnerships can pay dividends when it comes to procurement.
“With all public service costs under pressure, better procurement provides an opportunity to make significant savings that don’t cut into frontline services,” says Eugene Sullivan, former Chief Executive of the UK’s Audit Commission.
The point he makes is relevant across all areas of industry.
The benefits of procurement partnerships
Partnerships in industry are already becoming an increasingly popular way to work with their potential benefits ranging from providing new ambassadors for your brand to expansion into new markets.
How can the right collaborative partnerships help when it comes to procurement? Increased leverage, a better service and value for money, improved efficiency, quicker progress and increased value for money are all high on the list of positive outcomes.
Need to create a partnership program for your business?
Sharing for success
If there are fixed costs in the procurement process then partnerships mean that they can be shared. By working together organizations can achieve economies of scale because of the higher number of goods or services bought, and operational benefits can arise from the use of the same contracted services by pooling resources and increasing flexibility.
Perhaps one of the most exciting opportunities in collaborative procurement however is the chance to create longer lasting partnerships with suppliers.
Keep things on track
However, it’s crucial to avoid common errors by planning together to achieve common goals, being practical about timing and any technical specifications, agreeing an operational approach for the duration of the project, having a strong decision making process, and being clear about your ultimate objectives and keeping them in mind throughout the procurement and operational process.
Not sure how best to develop a partnership program?
Find enterprise partnership professionals on blur’s Marketplace
