Chapel Hill, NC

Friday, June 19, 2009

 Many procurement organizations focus time and resources on supplier relationship management. But they're missing a significant opportunity by not investing their time and best resources on key INTERNAL relationships. These relationships typically reside with the internal client (user) organization and with the CFO's organization. What are the benefits of these relationships?

1. You find out what matters to your CLIENT. For procurement to be a truly value-add organization, it must understand its client's requirements. Procurement needs to have a way of ensuring that sourcing decisions deliver on those requirements.

2. You become strategic, instead of tactical Being strategic implies that you're working on activity that affects the future vision, not just the here-and-now. When you work closely with internal clients, your activity becomes more directed towards the company's future goals, not just administering Purchase Orders, managing expedites, and processing returns.

3. You bring value, not bureaucracy If procurement organizations are being marginalized today, it is because they are continuing to behave in a bureaucratic manner. It is evidenced by rules trumping good sense. It is demonstrated by red tape that inhibits good business. Ongoing relationship-management with your internal clients will uncover new opportunities for delivering value to the business.

4. You drive compliance through buy-in, not bullying One of the most distasteful parts of the procurement job is policing other organizations that are by-passing procurement. Having a pro-active internal relationship management process significantly reduces that activity.

5. You engender participation from internal users on what YOU need to succeed Let's face it: you need something from your internal clients too. You can use this internal process to highlight those areas where THEY need to improve to allow you to succeed in your role.

Managing your key internal client relationships is essential to procurement's strategic future. Consider utilizing your most talented procurement professionals for the role of developing these relationships. This is a great way to showcase the value that procurement brings to the organization.

Nancy McGuire

President

McGuire Consulting Group, Inc

Chapel Hill, NC

919-967-3446

919 942 7202