How should a Procurement professional approach supplier selection to acheive enterprise-wide business objectives?
First, ensure that the supplier utilizes a market-leading position in the capture and reporting of savings at the transactional level with clear processes for establishing last price paid across the entirety of the set of products to be acquired, not just a market basket. This will allow you to clearly measure against your goals.
Next, ensure complete transparency in the procurement and reporting process by requiring visibility to prices paid and fees charged for the services provided.
Finally, focus on the process to drive compliance to contracted prices, thereby driving savings realization – if a supplier has great prices, but can’t execute the buy correctly, it’s meaningless.
