IACCM Contract Management Forum

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Simoons & Company
2020-01-22 09:50:09

Is transformation the theme of 2020?

In addition to my post from last week here on the forum (See www.iaccm.com/network/contract-management-forum/ I see many people that responded, saying that transformation is a challenge for them. Transformation to the cloud or transformation to ecosystems. (see www.petersimoons.com/2020/01/is-transformation-the-theme-of-2020/ for the full article).

In the market I see also a transformation from procurement to collaborative supplier relationships. A form of strategic partnerships with suppliers where almost all elements of strategic alliances, that have already been documented and research over the past decades, can be applied. In our Masterclass we already have seen procurement executives attend to learn more about the do's and don'ts of strategic alliances and partnership.

What is your experience with the transformation to collaborative supplier relationships and what is the most challenging part of that transformation: people behavior or organizational procedures?
 •  Fire and Emergency NZ  •   2020-01-29 08:31:14
Hi Peter - look again because your challenges to us are worthy of recognition and response - here goes from me. As I look at our plan for 2020 that we've set as a team, then yes, this is right up there. We've listened to the IACCM about a new approach to contracts that doesn't see us immediately prepare battle lines once we have identified a preferred supplier from the tender process. And as a result of that, we're working with our leadership team to make sure that they appreciate the critical contracts across the business - both the issues, and the plans going forward.

A big part of this is how we view suppliers. It's a big change in our thinking to have partnerships with suppliers, but luckily we're an organisation that a lot of businesses want to associate with their brand. So we've often had suppliers go above and beyond and act like partners, without perhaps thinking what we might offer, even by way of an acknowledgement, in return. Luckily we have a pretty awesome team who have identified the relationships that they see as partnerships, and are prepared to talk with the leadership team and the Board about things we might do going forward to recognise this.

We also had a good discussion the other day at a meeting with MBIE, who lead procurement here in NZ about whether or not someone who supplies 50,000 items of your run of the mill low value stationery items would ever be considered a partner, and I can appreciate that perspective that not everyone can be in a partnership. Equally, we've found it difficult to say that it's really a genuine partnership if every 3 years or so you're telling a supplier that you're thinking of seeing other people.

Is it our biggest challenge in the coming years ? Maybe, maybe not. But it's certainly up there for us, and I'd imagine that we're not alone. So I look forward to reading further details here about learnings from your masterclass.
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