Click here for part one of this series. “SciQuest, originally an e-market exchange, went public in 1999 with a $2 billion market cap. Two years later, SciQuest was on the verge of shutting its doors: ...
Listen daaahlings, let me tell you a little something about negotiating. Talking about money is so… GAUCHE. No no no, that won’t do at all. Today, enlightened procurement professionals collaborate. We innovate. We partner. We strategize. I do for you… you do for me… we have a relationship. No ugliness, no shoving. After all, there is no need to stoop to talking about dollars and cents. We have people for that. Right? Yes, well, have your people call my people: we’ll do lunch.
We can’t say that procurement no longer needs strong negotiating skills just because many spend categories are now being managed in a more relational way. Making that assertion demonstrates a fundamental lack of understanding about what it means to negotiate. Negotiation is a phase, not an action. There are a myriad of skills required to be an effective negotiator, and they are different for each set of circumstances.
In September 2011, Wal-Mart announced a plan to spend $20B with woman-owned businesses by 2016. More recently, they expanded their Women’s Economic Empowerment program to include a ‘women-owned’ labeling program. Products that meet company ownership requirements will start appearing on Wal-Mart shelves this September1. Qualified companies can apply to be a part of the program through WBENC and WEConnect International.
Despite the company’s apparent good intentions, the program has not been warmly received by all, including some critics who feel calling additional attention to these products simply because of female company ownership does little to advance equality. As one commenter posted in response to a BusinessWeek article on the program, “The path to gender equality does not involve stickers pointing out that a product has been made by a female entrepreneur.”2
Note: This post oritinally ran on the Procurement Insights blog.
“Without a good mental model you won’t survive in business for long.” – M. Hugos, SCM Globe
At the end of 2014, I came across an extremely interesting use of modern supply chain modeling. Michael Hugos, author of Essentials of Supply Chain Management and co-founder of SCM Globe, applied interactive supply chain modeling and simulation to the supply chains of ancient Rome – the olive oil supply chain to be specific.
I’m a history buff, so this was right up my alley, but trust me – it is worth your time to read the three part series. The case study is set in the Roman Empire in 300 A.D. Olive oil is in high demand because it can be used for cooking, light, cosmetics, and healthcare. Its value is second only to gold. Between demand and value, the conditions are right for exporters in the remote corners of the Empire to innovate, and they do not disappoint. Using the Romans’ expertise in water management, they alter the conditions of previously unfarmable terrain and make it both productive and profitable.
“There’s a false dichotomy between cost and safety. Are we willing and able to account for the many costs of not having a quality operation: lack of cooperation, poor leadership, waste, and incidents and accidents? If we really and truly account for them, then safety can pay for itself. Getting it wrong is more expensive than doing it right the first time.” – Capt. ‘Sully’ Sullenberger