We Are in Collaboration Mode: How to Start Joint Procurement
We are currently in collaboration mode and want to purchase jointly. Our boss wants to save costs, everyone wants success stories, awards, and press coverage. So, where should we start?
In reality, when it comes to procurement teams from different companies being asked to work together, there will inevitably be some disagreements. For example:
– “We do it better.” Of course, why should you admit that someone else might do things better?
– “They have different processes.” Everything they do is complicated and will slow us down.
– “We don’t have time for that.” That’s not my responsibility. I already have a lot of work, and my pay isn’t high—why should I spend time on this?
To overcome these behaviors, remember that procurement partners are not fundamentally different—they all follow the same core principles.
Before bringing the teams together, partners must be managed through collaboration alignment, trust-building, relationship management, and conflict resolution. The following are 7 practical recommendations for collaborative procurement:
1. Align the Business Before Procurement
A common misconception is that procurement alone can handle everything by consolidating volumes and achieving benefits. In reality, business alignment must come first. While procurement knows how to generate value through collaboration, business stakeholders may not immediately agree on requirements, branding, or customer experience. Procurement must demonstrate that forming a partnership will result in the best purchasing outcomes.
2. Align Vision and Strategy
Collaborative procurement requires executive sponsorship and alignment with the overarching vision and strategy of the partnership. A simple coordination initiative is not enough.
3. Define Shared KPIs
When following a joint strategy, it is essential to establish KPIs (savings, efficiency, etc.) that will be reported to all management teams and incorporated into the performance metrics of all stakeholders.
4. Drive Operational Efficiency Through Collaboration
Collaboration should make life easier. Joint tenders save time and effort compared to multiple separate tenders. Collaborative procurement strategies improve each organization’s strategy. Efficient operational models allow the best talent from each partner to work on initiatives that benefit everyone.
5. Standardize Processes and Templates
Establish standards for certain steps, metrics, and documentation. These can be simple, such as defining KPIs, or more complex, such as category plans. Joint tenders must comply with each regulatory body, so your tender committee should review standardized evaluation processes. When partner members source suppliers for contracts, they will identify reliable suppliers that meet the standards.
6. Communicate Regularly
You need frequent communication and a channel for team interaction (e.g., Microsoft Teams, SharePoint, or other project collaboration tools). Daily communications should be managed carefully; otherwise, emails from numerous stakeholders will quickly overwhelm inboxes. Broad communication builds awareness, gradually gains acceptance, and turns early adopters into change champions. Remember, successful collaboration requires change management.
7. Keep Opportunities Open
Do not close the door for those unwilling to join initially. Make it clear that opportunities remain open for participation. Observers will eventually decide to join once they recognize the benefits.
