Mid-tier procurement resourcing

In the mid-tier indirect procurement space, we are often not making the best use of our scarce resources, and by that I mean that we are not maximising the addressable spend per dollar spent on procurement. There are two reasons for this:

1. We should be making better use of tendering platforms (which I won’t discuss as there are others in the blogging world who cover this with far more authority) and
2. we far too often take suppliers to tender when we could achieve a similar result with a few rounds of negotiation.

But to negotiate well, we need information. Companies like the The Buying Triangle are on the right track in providing this information to their corporate clients. I predict a bright future for organisations who provide services to boost the negotiating throughput and effectiveness of organisations.

For incumbent indirect suppliers to companies who are not using services such as the Buying Triangle, I believe there is scope for the suppliers to better service their clients by providing relevant, high veracity, purchasing information. Perhaps they can establish a Lone Purchasing Organisation.