On the Fifth Day of X-Mas … (Supply Management Takes Center Stage)

On the fifth day of X-Mas
my blogger gave to me
five golden rings,
four little words,
tri-focal lens,
two boxing gloves
and a lesson in strategy.

Five Golden Rings

Sales and Marketing.
Product Development.
Human Resources.

Supply Management continues to sit at the intersection of these departments. Supply Management must work with Product Development to understand their needs with respect to quality, reliability, and functionality. Supply Management must work with Sales and Marketing to understand what product characteristics can be expounded upon to generate buzz or increase value (and, ultimately, the sale price). Supply Management must work with Human Resources to understand organizational values, look for strategic partners, and source temporary and contract labor. Supply Management must work with Finance to understand working capital requirements and preferred payment terms. Supply Management must work with Legal to create the best contracts for the organization and ensure that they appropriately protect the organization against all foreseen risks.

That’s why the sourcing organization needs to form cross functional teams consisting of representatives of each department that are involved with each and every sourcing project from the get-go. This not only streamlines the process, but increases your chances of success. During RFP formulation, Legal and Finance will help you nail down the terms and conditions in the template contract to streamline signing down the road. Product Development and Human Resources will help in supplier pre-qualification. Sales and Marketing can assist in the RFP evaluations. And with everybody’s help, you’ll ultimately make the right decision every time and maximize the value of each and every sourcing effort.