Building Long-Lasting Relationships in Procurement

Categories : Procurement Goals | Improve Credibility Published on : Feb 02 2018

By: ProcurementIQ Staff Writer, Ashley McKay

Building strong, healthy relationships is essential to one's personal and professional life, alike. In the business world, we aim to please our customers and build long-lasting relationships.

The procurement function, specifically, typically aims to please two separate types of customers: internal and external. And, it's no secret that this can often be difficult, especially when goals and priorities are misunderstood and miscommunicated. Unfortunately, so many of procurement's internal customers still only think they can provide value as it relates to cost savings, when, in actuality, they can provide the organization with so much more. However, it becomes challenging to prove that, when procurement isn't viewed as a trusted resource.

CPOs on Building Relationships

In an article, Matthias Gutzmann highlights a quote from Fabian Ziegler, the CPO at Shell, that states, "Procurement is a relationship business." A statement that rings true for procurement professionals within organizations across all industries. Matthias goes on by listing quotes from nine other CPOs that emphasize the importance of building relationships and strategies on how to do it.

Here are three of the nine quotes. To read the full article and additional insight on how to build stronger relationships with your customers, click here.

  • "The relationships developed by procurement are based on the value created by linking suppliers to the company's strategy. This requires knowing both your business and your suppliers very well, and that is the hard part." - Jean-Yves Rotté - CPO, GlaxoSmithKline

  • "Relentlessly pursue strong relationships and they will pay long-term dividends." - Gene Tabor - Former GM Purchasing, Toyota 

  • "Under promise and over deliver." - Remko van Hoek - Former CPO, The Walt Disney Company

 



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