Real World Sourcing Slides – and we’re off to present in Dubai!

Last week saw the first of this year’s BravoSolution Real World Sourcing session when Guy Allen presented on “You get what you pay for” – or, as he put it, “you pay what you deserve to pay”.  We mentioned last week his thoughts on market pricing and how aggressive negotiation approaches can lead to supplier innovation. He also covered the issue of appropriate negotiating styles for different market and pricing scenarios, which I found very thought-provoking.

For instance, if the supplier is in a dominant position, with high margins and pricing above the “true” cost of the product, then tactics such as using PPCA (purchase price cost analysis) and perhaps even linking pricing to some sort of formula, might be effective.  And a logical negotiating style is the most likely to bring benefits.

On the other hand, if margins are tight, and prices low in terms of true product costs, a logical, formula driven approach to negotiation and price-setting may well lead to the buyer paying higher prices! All very true, and all of this made me think (not for the first time) that as a profession, we’re probably a little weak in both financial analysis skills and a working knowledge of economic theory.

Anyway, you can get a copy of Guy’s slides here, and don’t forget to take the on-line “test” which enters you into the running for the BravoSolution Real World Sourcing scholarship and the end of year celebratory dinner – more details here.  And the next session is me covering “Contract Management - Generating Real Value from your Contracts” on Wednesday 17 April 2013 – still a few places available I believe, but going fast...

And there is more exciting news about the Real World Sourcing Series – we’re taking the events to Dubai this year! That is in conjunction with Tejari, the Bravo sister company based in the Emirates, and CIPS MENA, the Chartered Institute of Purchasing and Supply’s Middle East / North Africa operation.

The first session, which will see contributions from both Guy and me, is on April 3rd in Dubai, then there are three more session through the year. The first one features two of last year’s successful sessions – “Making Spend Analysis Work” and “Taking on a New Category”.

You can find more details and book here – so please do tell any colleagues you have in that part of the world who might be interested.

 

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