Understanding Procurement 2020

written by Edward Rayner
8 · 10 · 20

Why your customers are looking for new suppliers in 2020 and our strategies on how to win this business.

It is highly likely that, in this second half of 2020, you will be asked by your customer groups to join an increasing number of competitive processes. We have written this article to help you understand the drivers and aims of this new pipeline to help you achieve your bidding strategy.

The Procurement Environment

The current supply base in many industries is proving to be no longer fit for purpose in meeting 2020’s ongoing rollercoaster ride. Procurement leaders and teams I speak with, across different industries, are actively increasing their aggressive competitive actions to seek quick resolution to these current issues. Eager corporate procurement teams have finally received the green light to “go to market” rather than just renegotiate with current suppliers protecting internal stakeholders against the perceived distress of “cost of change”. Public sector procurement teams are under increased pressure to support local industries and meet a whole new set of community expectations.

Being able to understanding why the current supply base of your customer group is not fit for purpose will equip you to focus your offering on their actual needs.

Take a read through the below list to help further identify your customer’s requirements for changing supplier and determine how you can meet their needs.

Customer Drivers, Aims and Your Response

THE CUSTOMER DRIVER

WHY YOUR CUSTOMER NEEDS NEW SUPPLIERS

TO WIN THIS BUSINESS, FOCUS ON YOUR COMPETITIVE ADVANTAGE ON YOUR

Repair a damaged supply base

Current suppliers are unable to change their offering to meet updated needs

Suppliers are not financially or operationally secure

Suppliers have gone out of business

Tier 2-4 suppliers have gone out of business
Supplier management capabilities and practices

Business continuity

Speed of onboarding

Business continuity planning

Protect its working capital position

Holding onto cashflow is paramount

No spending unless critical and even then, no spending

The directive is to pay the bare minimum price for the bare minimum acceptable service

Price position rather than soft savings

Minimisation of organisational touch points required to deliver the solution

Minimisation of management required (i.e they don’t require headcount to manage you)

Financial health metrics

Payment terms flexibility

Meet new organisational needs 

The need to deliver alternative solutions to customers which requires a new supply line

A new revenue stream so there is a urgent need for a new supplier

Onboarding processes

“Plug and play” features of reporting

Dynamic data features of reporting

Ongoing cost management 

Adjust the workforce

The team is working remotely so different support services are needed

Reduction in workforce has resulted in outsourcing of activities

Supply Chain Ethics

Onboarding process

Scalability

The Pitchthis team are actively supporting organisations respond to these drivers and signals within bids and sales strategies. Get in touch with us to discuss how we will help you win this new business.

Edward Rayner

Procurement & Supply Management - Specialist Partner A highly experienced procurement and supply side management expert with a further background in sales and business development.

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