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Procurement & Supply Chain Innovation 2020

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P R O C U R E M E N T & S U P P L Y C H A I N I N N O V A T I O N 12 BUSINES S CONTINUIT Y ARR ANGEMENTS Extent of understanding of business continuity arrangements of key suppliers, according to supply chain professionals Connecting Great People, with Great Companies Your source of top talent in procurement and supply chain International expertise. Tailored, personal service. Diversity focused. www.borrerexecutive.com | Tel +41 21 312 09 67 | info@borrerexecutive.com very week, via tablet, smart- phone or laptop, a group of procurement specialists join an online informal meeting to discuss best practice. Known as the Hackett Café, it is an opportunity to chat through the problems they have encountered and suggest solutions. It's a far cry from the traditional cut and thrust of procurement, but it is a sign of how the industry is shift - ing, says Nic Walden, senior adviser in The Hackett Group's Procurement Advisory. "Emotional intelligence is absolutely a game-changer in pro- curement," says Walden, who works with top executives at large multi- nationals with £1 billion in procure- ment spend. "In the banking crisis it was very different; it was all about extended payment terms and driving price reductions. Now good companies are looking after their micro and small suppliers. Some are paying suppliers immediately. Suppliers will remem- ber how they are being treated right now and that will set the tone for the relationships of the future." Tim Burt, customer insights man- ager at Procurement Leaders, the world's largest and valued procure- ment network and intelligence plat- form, says it is crucial procurement works to improve the organisation's status as a customer, and perhaps even a partner, of choice to its sup- pliers, especially during the COVID- 19 crisis. "Suppliers will prioritise supply continuity to those customers they decision-making, it is what makes space for it," he says. Simon Geale, senior vice president of client solutions at Proxima, says it is the creative and consultative skills that will make the difference in the long term. We subconsciously value emotional connectivity over logical connectivity and, by using our emotional intelligence, we start to understand the customer better. The average business buys in goods and services to the value of 70 to 80 per cent of revenues and negotia - tions are not just about price. "An organisation sets its own strat- egy, but how it gets there is signifi- cantly reliant on how well it works with its suppliers," he explains. "The better those relationships, the more likely a positive outcome, be that speed, innovation, revenue or cost optimisation. You can't just call a supplier a partner and expect things to change." At its heart, emotional intelligence is about seeing the business trans - action from the point of view of your customer or supplier, says Jason Kay, chief executive at LiveLead. The mission to "be the best cus- tomer you can be" makes commer- cial sense in this new world, he says. "When there is a limit in the supply of anything, someone has to make the decision of who gets what is available and who misses out," says Kay. "It stands to reason that those customers who always pay on time, who haven't screwed the price down to the bare minimum and aren't always calling with emergency orders will most often get preference in these situations." For those that understand this, the opportunities are great, says Lucy Harding, head of the procurement will benefit the supplier and involve senior stakeholders during commu- nications to strengthen the partner- ship further. Applied futurist Tom Cheesewright, who has advised major companies such as Accenture, LG, Nikon, and Sony Pictures on Monty Rakusen/Getty Images The focus of supply chain management is shifting from limiting and controlling spending to looking at how to build better relationships with customers and suppliers Why emotional intelligence matters E Marianne Curphey have a more collaborative relation- ship with," he says. To do this, pro- curement needs to communicate to key suppliers how they fit into the organisation's strategic roadmap during this time of difficulty, lever- age the organisation's brand value to demonstrate how the relationship The Business Continuity Institute 2019 Suppliers will prioritise supply continuity to those customers they have a more collaborative relationship with R E L A T I O N S H I P S strategy, says in a world where machines take many of the deci- sions and much of the competition might look very similar, it is the human factor that will differentiate. "Trust, loyalty, added value; the rise of automation in procure- ment isn't a threat to more human Tier 1 Yes, for all Yes, for some Occasionally Never Unsure Tier 2 Tier 3 Tier 4+ 41% 32% 12% 4% 11% 13% 35% 22% 16% 15% 8% 16% 26% 28% 22% 6% 11% 18% 39% 26%

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