Success is defined as an accomplishment, or the meeting of an aim or objective. In a recent article, Jonathan Cooper-Bagnall of Proxima Group challenges Procurement to re-think its measures of success. He might have posed the same challenge to all those involved with forming or managing trading relationships.
Tim Cummins, CEO of the International Association for Contract and Commercial Management (IACCM), spoke at the NEC Users' Group Seminar in 2015. Tim's presentation was 'Collaboration: Why it matters, when it matters and what it means.'
The presentation covered:
- Why collaboration is top of executive focus
- Approaches, capabilities and investments
- Insights into collaboration within contracting
The NEC Users' Group Annual Seminar took place on 20 April 2015 at One Great George Street and was another sell-out success. The seminar is the highlight of the NEC calendar and brings together the international community in the heart of Westminster, London.
Transforming the Value-Chain in Healthcare - Bringing Buyers and Sellers together to address the industry's burning challenges.
The pharmaceutical market is undergoing fundamental change. Technological advances, market shifts and vast changes to the way customers engage with 'big pharma' are causing pharma companies to reconsider their market positioning, perception of value and supply chain operations.
Many suppliers to the pharmaceutical industry are failing to grasp these fundamental changes, and are continuing to market their products and services to big pharma customers in the same way as they did a decade ago. Without understanding pharma's new perception of value-creation - including the development of durable supplier/buyer partnerships, and frameworks that drive performance and innovation - suppliers run the risk of continuing to 'sell science at bargain prices'.
In this webinar, Giles Breault and Sammy Rashed of The Beyond Group directly address these issues. They bring together the latest ideas and approaches, gleaned directly from their groundbreaking Pharma Think Tanks, that help companies evaluate their approach, develop new sources of value and link their products directly to the needs of pharma customers within a performance oriented framework.
In this one-hour session packed with actionable insights, Giles and Sammy will cover the following topics:
Analyzing the current healthcare trends and their impact on global pharmaceutical industry and its supply chain
Understanding the need to strategically align your organization
Recognizing roadblocks to partnering with pharma (roundtable case study discussions)
Leveraging SRM & CRM to identify ways for becoming a preferred partner
Tying-it together: building the framework for durability and sustaining trust
Applying the learning and insights into strategies to become a preferred partner
I have written several blogs recently on the topic of performance or outcome-based contracts. This reflects growing pressure on suppliers to take responsibility for results and the momentum is especially strong in the public sector.
Procurement-as a function-is once again at a dramatic inflection point. As traditional sourcing techniques become increasingly outdated, the meaning of 'strategic' has shifted, and best practices must evolve to align with new priorities. Correspondingly, procurement professionals must acquire new competencies to truly enable differentiation for their clients.
Specifically, technology is disrupting both the way that we measure value on what we purchase, and the way that we purchase. Cognitive tools and smart machines are automating many of the tasks traditionally performed by humans, and the 'SMAC' technologies of social, mobility, analytics and big data and cloud are redefining the sourcing objectives, activities and skills required of sourcing and procurement professionals.
During this session, we will examine the impact of disruptive technologies and changing business conditions on the procurement marketplace, focusing specifically on the role of sourcing. In addition to outlining predictions regarding the future of the procurement function, Bill will map career strategies for procurement professionals as they navigate a rapidly changing business environment.
We are looking for experiences and recommendations for using social media for procurement in the public sector. Please post a response in this forum or send to email@example.com. All comments and suggestions are welcomed. Thanks.
As a government body engaging in international (Gov-to-Gov) trade, what is the position on the Environmental Information Regulations 2004 and Freedom of Information Act 2000? Do the Act and Regs have effect on Clients and Bodies outside the UK?
Thanks for your help!
IACCM REPORT FINDING: Private sector personnel are almost 80% more likely to be influenced by the need to promote competition and minimize operating costs -Please share your thoughts. Hoping this generates some activity.
When I read IACCM article, I was perplexed by the statement above and therefore I offer the following thoughts:
In the U.S. public sector procurement is the intersection between three interconnected non-complimentary forces; law, public policy, and industry. Public policy combined with Federal law dictates that competition is the single most important aspect of the U.S. Federal procurement process. In accordance with the law contracting professionals in the U.S. Government are required to consider/ research 7 different socioeconomic categories before they can compete an opportunity in a full and open environment. At each layer acquisition professionals make a business decision about the capability of industry to perform the work at hand for a reasonable price. Contracting professionals are required to do this for simple procurements and large strategically sourced contract vehicles.
In fact, at the Department of Homeland Security (DHS) the initial market research described above has helped create an industry base of 15,000 current contractors 11,000 of which are small and medium sized business. Each year over 3,000 new companies win a contract with the Department. This ensures that the Department has a highly competitive marketplace that is constantly competing to meet mission objectives and win contract awards. Although the Government incurs additional labor costs to perform the market research the cost savings from the robust market place and constant competition is tremendous. Furthermore, the companies that survive in the marketplace have a keen understanding of the mission and how to achieve it at the lowest cost. At DHS, performance metrics include rate of competition on each individual procurement ( 76% in FY 12) and operational cost savings (approximately $330M from strategic sourcing alone).
The interesting point here is that the level of competition is so high that contracts tend to be awarded to industry partners that have determined the best way to meet the mission at the lowest cost. This is much different than the goal of helping a corporation maximize shareholder wealth. In the public sector (many times in my experience) we are contracting for services that would normally be an individual company’s competitive advantage. Meaning that many of the contracts we write are to perform a service that many companies would never outsource.
The survey results posted above seem to indicate that public sector professionals do not value competition as a way to minimize operating costs. However, I believe public sector procurement professionals value competition just as much and work in a more complex environment that challenges them to think beyond a single value proposition (maximizing shareholder wealth).
I am wondering if the way the question is written generated misunderstanding. If not, then I believe we need to resuscitate the discussion around minimizing operating costs and promoting competition to ensure that public sector employees understand how valuable this can be. Thoughts?
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