Our research into procurement practice and behaviours is vast. To date we have questioned over 1200 global sales leaders and procurement directors, across multiple countries and across 22 industry sectors.
Our findings included:
What challenges they face when meeting their strategic goals
For example – 68.3% rate obstacles from within their own organisation as the biggest challenge they face in meeting their strategic goals.
How sellers can help them overcome internal obstacles.
Perceptions of procurement acting as barriers to sale
We studied the perceived barriers that appear when a major sale or bid process, particularly a formal RFx or TTT, involves a prospect’s procurement team. We found that in the private sector at least, non-compliance with the procurement process is seldom an automatic disqualifier (even if procurement say it is). In particular, 56.3% of respondents who overtly created access to the executive influencers inside the customer, in instances where the RFx prohibited doing just that, actually won the contract.
The phenomenon of reverse e-auctions
Reverse e-auctions are a tool often used, sometimes as a blunt instrument by procurement departments, to the dismay of high value-add suppliers. We made some surprising discoveries about who wins and who loses, and why; and what that could mean for bidders’ strategy in future.
What emerges from all our findings across all our studies is that even big, multinational organisations are at different stages on the procurement best practice journey. Some have their procurement people in windowless offices in the basement and treat the purchase of mission critical IT services in the same way as the purchase of paper clips. Others have a CPO on the board, advanced category management philosophy, and uniform strategic sourcing processes across continents.
Armed with our procurement research, we developed a ten-point Procurement Maturity Model, with recommended seller approaches and behaviours linked to each. And just as procurement organisations are extremely varied in the degree of maturity they demonstrate, the organisations selling to them are only now beginning to address the interactions they should have with their professionalised buying counterparts. Many are far behind.
We’re a world leader in our procurement research and understanding. Many leading bodies such as SAMA, APMP, IACCM, The Management Consultancy Association, Dow Jones and Randstad, have sought our advice and invited us to share our knowledge and conferences and seminars.
Our greatest passion comes from teaching sales and bid teams how to confront these modern day challenges.