Bankole Olomu m.ACSC, SCOR-P’s Post

Procurement vs Purchasing!! what's the big deal? I recall my early days as a buyer when some of my senior colleagues would tease and taunt us on the difference between these 2 terms. We didn't get it then. But as i grew in the industry it dawned on me that you can't be in procurement without the skills of purchasing. In marketing terms, purchasing could be likened to closing a sale, which is great especially if it was achieved at a "good cost". But procurement has to deal with strategic sustainability of setting a deal in motion such that it can withstand most adverse economic changes and continue to deliver on its value for the organization in part and the broader ecosystem of the transaction which includes other stakeholders, direct and indirect. Procurement considers not just the relative cost but the TCO related to the product (goods or services) especially if it can be optimized to deliver the service based on certain benchmarks and indicators. Procurement as a science requires analytic study and understanding of immediate or potential needs such that strategies in line with ethical policies and processes are developed and implemented with a view to achieving a win-win sustainable collaboration along the supply chain. I am innately proud of my career especially considering that i come from a long line of "traders" whose ability to analytically source, negotiate, supply goods/services and manage vendors is alarming. My father taught me well, like his father before him. Now i have taken my craft to the world stage and look to keep evolving and sharing my knowledge.

The last 4 years of my career revolved around procurement function across 3 different roles. A theme which is common among all 3 roles is the challenge faced in defining “Savings”. Value creation for procurement function is predicated on savings. The money we save by making better sourcing decisions, the better the supply chain functions downstream. This becomes even more pertinent when you are procuring in domains like agriculture(open market) and logistics(spot). Procurement is a strategic function where one defines the approach to sourcing. But the day to day tactics are determined by the market conditions of the day. This is main motivation behind price being closely tracked in open/spot markets and it is often considered as the ultimate signal. The common mistake which even I have done in the past is defining “Savings” as spend saved considering one’s previous instance of procurement. This is perfectly reasonable if market conditions remain the same across both instances which is not the case generally. Savings in procurement is saved spend compared to market conditions. There are two possibilities basing on the market conditions, one can either buy cheap or expensive. The way one gets to know how successful they are is based on how others have faired at the same time. Defining “Savings” and making it accessible has become my highest order bit as I continue to work with procurement function.

✨ Procurement Quote of The Week ✨ Aren’t we all tired of getting underestimated in what we do in procurement? 😟 When people say our job is just ordering supplies is just like saying a chef’s job is just making toast–we all know their responsibilities stretch beyond that! So, let’s continue to prove we deserve every praise and recognition by continuing to drive value and deliver the best results in our organizations! 🥂 What’s the most absurd misconception have you heard about procurement? 👇 #Procurement #ProcurementQuote #SupplyChain

🔍 Procurement Insight: The Only Free Cheese is in the Mousetrap 🧀🚫 🧐 In the world of supply chain and procurement, the saying "The only free cheese is in the mousetrap 🐀 " holds a valuable lesson. This quote serves as a powerful reminder that deals or offers that appear too good to be true often come with hidden costs or risks. 💪 In procurement, our goal is to secure the best value for our organization, balancing cost, quality, and risk. Here’s how we can interpret this quote in our field: 💡Beware of Unrealistic Offers: Exceptional deals might conceal hidden costs or quality issues. Always dig deeper to understand the true value and potential pitfalls. 💡Risk Management: Assess the reliability of suppliers. An unbelievably low price might indicate risks of non-performance or supply chain disruptions. Solid contracts with clear terms are essential. 💡Total Cost of Ownership (TCO): Look beyond the purchase price. Consider the long-term costs associated with maintenance, operation, and eventual disposal. A low initial cost can sometimes lead to higher overall expenses. 💡Ethical Considerations: Ensure that low prices are not achieved through unethical practices. Sustainable and fair trade practices should be a priority to maintain corporate integrity and social responsibility. 📃By remaining vigilant and critical, we can avoid the metaphorical mousetraps and make informed decisions that drive long-term value for our organizations. #Procurement #SupplyChain #RiskManagement #SustainableSourcing #ValueOverCost #LongTermSuccess

We've seen the best in Procurement mastering these 3 things (#3 is undeniably the most important) 1. Negotiate: Secure top deals. ---> Excel at striking deals to get the best quality at low cost, reliably 2. Detail-Oriented: Miss nothing. ---> Every order, delivery schedule, and contract term 3. Connect: Build key relationships. ---> Cultivate trust and cooperation with suppliers and internal stakeholders Mastering all three together? That's where the magic really happens. Got any tips or priorities of your own? Drop it in the comments below and share your knowledge! 👇

Don’t be this procurement pro - ❌ Complaining about stakeholders not following due process, but don’t care about Why. ❌ Sandbagging your budget so you can look good when you breeze past. ❌ Requesting a seat at the table instead of actively adding value so you don’t have to request anything. ❌ Not networking with executives, stakeholders, business units, competitors, supply partners, industry experts. ❌ Seeking comfort in the words “that’s how it’s always been done”.

⁉ I’ve got 99 problems, but procurement wasn’t one (until now) 📈 Our business leaders already have a (x-month) plan to improve their area. It's easy to sit centrally and think that there is an opportunity in category XYZ, but.. If you don’t know how your opportunity fits into their world, it’s going to be an uphill struggle to sell the project to them. In this week's story post, join Janine – a factory manager – as she gets an “important” call from an unexpected source https://lnkd.in/d8wYQyb3 --- And yes, it does need to be sold to them. To focus on “your” opportunity (and even to be part of creating a category strategy), they will need to drop something else. Something they are likely excited by. Something they may have told their boss they will focus on. Something that might already by written in their objectives.. ---- The opinions expressed in this post are solely mine and do not represent the views or opinions of any organization or entity with which I may be associated.

Do you see Procurement as a force for good or evil? As your company grows, and you bid for bigger business, you'll most likely find yourselves dealing with procurement more. There’s a lot of fear, myths and misconception by sellers around the role of procurement. In many ways, they're simply another stakeholder, with a very specific set of objectives. In essence, the primary roles of procurement professionals (often called Strategic Sourcing) are to source goods and services for their business, based on clear business requirements, in a way that: - Creates the most value at the lowest risk. - Drives innovation, quality and reliability. - Ensures DEI and ESG in the supply chain For example, when it comes to sourcing marketing services the relationship between value and risk is often nuanced. However, it's not Procurement's job to work out the complexity of how value is created by engaging you as a supplier! So next time you engage with procurement or strategic sourcing professionals, take a step back and think about: - How do you describe/demonstrate the value creation process when you work with clients? - What are procurement's key objectives and wins? - It's rarely just about "lowest price wins", unless you've allowed yourself to be positioned as a commodity supplier. So how do you demonstrate and defend your strategic premium position? - How are they going to select the winner? If you want more insights about how procurement work from a seller's perspective, drop me a message. What are your experiences, good and bad, when dealing with procurement?

What's urgent isn't always important, and what's important isn't always urgent. - Urgent but Not Important: Some pallet needs may seem pressing, but they don't align with your long-term goals or values. These demands can distract you from focusing on what truly matters in the procurement process. - Important but Not Urgent: On the flip side, certain aspects of pallet procurement, like ensuring sustainability or fostering collaboration with suppliers, may not have immediate deadlines but are crucial for long-term success. These should not be neglected despite their lack of immediate urgency. By recognizing and prioritizing these distinctions, we can navigate pallet procurement with wisdom, ensuring that our efforts are aligned with our overarching goals and values.

🌟 How My Procurement Mindset Evolved 🌟 Started in the early 2000s when "strategic purchasing" was more a wish than a reality. Back then, it was all about 💰 cost-cutting, 🤑 squeezing suppliers, and haggling for the last penny. 🔄 My turning point? A role in Eastern Europe, sourcing from low-cost countries. I realized procurement could be about more than just saving money—it's about creating value! 🚀 Today, I focus on: 💡 Creating Value 📊 Market Share Potential 💰 Price Positioning 📈 Volume Growth It’s no longer a race to the bottom. Why not try a more modern approach? 🌍 --------------------------------- Hi, my name is Peter Gyurak, I tender, Negotiate and Consult buyers. Get in touch at pgyurak@gmail.com