What is the SS? Is it the Secret Service? Silent Service? Submarine Service? Social Services? No, there is a new group term from the financial group—strategic sourcing (SS). Wow, what does that mean? What it means is that the person who buys corn flakes on Monday buys tires and oil on Wednesday. The term SS has many different connotations, but for us doctors of iron, maybe “Social Security.”
There seem to be a new wave, tidal wave that is, quickly taking over what we in the maintenance business have been doing for many years—buying parts and supplies. One of the rewarding parts of the business is to negotiate for the best deal, the right price and the best solution. There’s more to the negotiation than price. It is also about service, supply, location, product and, in spite of what SS might think, people. It is people who help you on Thanksgiving Day 10 AM when the gas truck delivering gas needs a part so you can get to your mothers house for her day.
As a “limited time” executive it is my responsibility and yours to look and any and all ways of reducing the operating cost without disruption of customer service and business disruption. It is change of evolution not revolution.
There was an old-time company that had been doing parts business for many years with the same people and, to tell the truth, sometimes friendships got in the way of good business practices. Through evolution, good communication and negotiations over a period of planned time, both parties in procurement situations adjusted to the new sheriff in town. The then-current managers saw the evolution a change and price reduction without the evil of attack of the coldness or complication of a 22-page request for proposals (RFP). They learned a fair way and relationship building tactics that strengthen them as managers who were responsible for up-time.
There seem to be movement from the Big Accounting software companies to dive into the purchasing, or SS as it is called. This proceed is driven perceived resolution of systematic confusing, complicated exciting solutions of “strategist sourcing.” Of course, buying corn flakes and paper towels is the same as buying a sensor for an out-of-service truck—just point and click!
If you have not turned your own practices upside down, the SS is coming. Then wait until you see the 27-page “contract.”
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