Social Value Business’ Post

We’ve dug ourselves into a pretty big hole Metaphorically speaking that is —when it comes to understanding value. Recently, I was in a meeting when it hit me: as a society, we do not instinctively know what value truly is. Too often, value is mistaken for price. Isn’t that crazy? I say this as someone whose job is to help companies measure their value to society (social value). Every day, we have the opportunity to make value-based decisions. Yet, the reality is that we often revert to price because, in the short term, it feels like we’ve won. The depth of this hole is significant, affecting everything from how we make personal purchasing decisions to how our countries draft policies and laws. Next month, the Procurement Act is set to launch, and I see it as a small but important step toward digging ourselves out. By shifting the focus from the Most Economically Advantageous Tender (MEAT) to the Most Advantageous Tender (MAT), the government is taking a step toward prioritising value over price in its buying decisions. I’m hopeful, but real progress will depend on how we, as individuals, redefine value in our everyday lives.

This is exactly what we’ve been waiting for—a session that tackles procurement challenges head-on. If you're serious about finding better ways to save costs, don’t miss out on tomorrow's discussion.

Why people see Procurement as the bad guy and how that’s just NOT FAIR! How many times have you heard suppliers say, “procurement just show up late and start causing problems!” They think we’re a pain in their arse, who essentially end up breaking deals. In reality, here’s what usually happens… • Stakeholders contact suppliers directly (mistake) • Detailed discussions take place (mistake) • Expectations are set on both sides (mistake) • Prices are "agreed" (mistake) • Then... procurement turn up (thanks for the invite!)   We’re being seen as ‘difficult’ because we start: - Questioning pricing (good business) - Requesting competitive quotes (good business) - Reviewing terms & conditions (good business) - Assessing commercial risks (good business) - Ensuring compliance (good business)   We’re NOT being difficult. Like you, we’re just doing our job.   We're here to: • Drive value • Manage risk • Ensure fair competition • Protect both parties • Create sustainable partnerships   When everyone involves procurement EARLY, you better believe we’re only looking at best outcome for BOTH parties. Anyone else seen as the 'bad guy' in their business? Hi I'm Steve Walton. I help companies with cost savings, reducing risk, have better quality suppliers, focus on ROI and sustainability and train budget holders on best purchasing practices.

Governance

Why people see Procurement as the bad guy and how that’s just NOT FAIR! How many times have you heard suppliers say, “procurement just show up late and start causing problems!” They think we’re a pain in their arse, who essentially end up breaking deals. In reality, here’s what usually happens… • Stakeholders contact suppliers directly (mistake) • Detailed discussions take place (mistake) • Expectations are set on both sides (mistake) • Prices are "agreed" (mistake) • Then... procurement turn up (thanks for the invite!) We’re being seen as ‘difficult’ because we start: - Questioning pricing (good business) - Requesting competitive quotes (good business) - Reviewing terms & conditions (good business) - Assessing commercial risks (good business) - Ensuring compliance (good business) We’re NOT being difficult. Like you, we’re just doing our job. We're here to: • Drive value • Manage risk • Ensure fair competition • Protect both parties • Create sustainable partnerships When everyone involves procurement EARLY, you better believe we’re only looking at best outcome for BOTH parties. Anyone else seen as the 'bad guy' in their business?

Why people see Procurement as the bad guy and how that’s just NOT FAIR! How many times have you heard suppliers say, “procurement just show up late and start causing problems!” They think we’re a pain in their arse, who essentially end up breaking deals. In reality, here’s what usually happens… • Stakeholders contact suppliers directly (mistake) • Detailed discussions take place (mistake) • Expectations are set on both sides (mistake) • Prices are "agreed" (mistake) • Then... procurement turn up (thanks for the invite!) We’re being seen as ‘difficult’ because we start: - Questioning pricing (good business) - Requesting competitive quotes (good business) - Reviewing terms & conditions (good business) - Assessing commercial risks (good business) - Ensuring compliance (good business) We’re NOT being difficult. Like you, we’re just doing our job. We're here to: • Drive value • Manage risk • Ensure fair competition • Protect both parties • Create sustainable partnerships When everyone involves procurement EARLY, you better believe we’re only looking at best outcome for BOTH parties. Anyone else seen as the 'bad guy' in their business?

🎯Have you heard about Target Pricing in Procurement ? A Strategic Approach 🟠What Is Target Price? 🔸️The target price is the non-negotiable price at which your product becomes competitive in the market. 🔸️Think of it as your North Star during product development. 🟠Target Costing: Guiding Your Team 🔸️Develop specific cost targets for the entire product and its components. 🔸️Maximize cost-out by focusing on smart cost-targets. 🟠Impact on Procurement Success 🔸️Encourages efficiency and cost-effectiveness. 🔸️Equitable risk transfer through target contracts. P.S. can you share an example of how you indicate the target price for each case?

Just finished the course “Purchasing Foundations”!  I have some experience in purchasing and establishing supplier relationships in China, which is similar to what the course teaches. However, one difference I have noticed is that the supplier's credibility, reliability, and background checks such as legal and political risks, played a more significant role. In some cases, these factors may outweigh the price considerations. It could be due to a different business culture or just for a particular industry. Anyway, glad to learn something new.  Check it out: https://lnkd.in/dBASKWiv 

If you only meet 66.6% of the criteria here You’re not a good fit for Procurement ☹️ Trouble is? I’ve met too many who don’t meet the last criteria and they seriously diminish the credibility of our brilliant profession. Here’s how I’ve seen this play out badly: 1. The ambitious Head of who is desperately seeking a C-suite position Will sacrifice all Procurement values and integrity to get there. 2. The Pro negotiator who has made the transition from Purchasing to Procurement Enjoys nothing more than negotiating costs down and will happily ruin a supplier relationship to ‘look hard’ in a negotiation 3. The consultancy approach where they’ll do anything to ‘claim’ a saving on the tracker. Will work with stakeholders to steal credit for stuff they’ve had no impact on. Very happy to manipulate the budget cycle to make themselves look good and meet target. 4. The ego ‘blocker’ who loves the power of saying no to stakeholders Won’t find a solution, just throws policy and process up as a barrier to the business getting things done. Enjoys nothing more than saying no. Do you agree? What have I missed here? ~~~~~~~~~ P.S. 3 points if you can tell me the film this music is associated with, 10 points the composer P.P.S. For insights on why I’ve reposted this video, check out my comments.

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