Friday, September 30, 2005

Procurement Risk

I hope that you have enjoyed the article "Procurement Risk Analysis."

I wrote this article several months back and planned it for release on October 4. It turns out that the timing was both good and bad.

The article was written before Hurricane Katrina and Hurricane Rita hit. So releasing it now is good because people are thinking about procurement risks and how to avoid or mitigate them. So hopefully the article will fill the need for the increase in procurement risk research that is being done right now.

The timing was bad in the sense that maybe some of the subscribers to PurchTips could have prevented some of the ill-effects on their business of the hurricanes if they had read the article and more thoroughly prepared.

Of course, like everyone else, I didn't have a crystal ball that told me that two massive hurricanes would cause so much destruction this summer and fall.

Hurricane season will be on us again next year. So be sure to review Procurement Risk Analysis early next summer. While I hope next hurricane season is disaster-free, if disaster must happen, be sure to have a plan to deal with it.

Respectfully,
Charles Dominick, C.P.M., SPSM
President
Next Level Purchasing, Inc.
Give Your Purchasing Career A Boost By
Earning Your SPSM Certification Online At
http://www.NextLevelPurchasing.com

Thursday, September 01, 2005

Negotiating With Suppliers

I hope that you have enjoyed the article "Negotiating With Suppliers Over Policies."

Some supplier policies are just set up to discourage negotiation. To not have to subject their phone representative to the task of decision-making and negotiating.

So challenge the policies.

But, remember, one of the most important aspects of the policy negotiation process is to make sure that you're communicating with someone empowered to waive policies. Negotiating with someone who isn't a decision-maker is futile. They have a job to do. Honoring your request would be breaking the rules. That could mean that they won't get a raise. Or they'll lose their job. How attractive is satisfying you when these consequences are at stake?

The process outlined in the article has worked for me. Let me know if you use it and how well it works for you!

Respectfully,
Charles Dominick, C.P.M., SPSM
President
Next Level Purchasing, Inc.
Give Your Purchasing Career A Boost By
Earning Your SPSM Certification Online At
http://www.NextLevelPurchasing.com

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