From the archive: Buyers must think like customers
Five years ago we wrote an article on the benefit of procurement people getting involved at the design stage, to improve on giving customers what they want.
Perhaps now we are seeing the fruition of this idea. As we write in the current issue of SM, First Group and LloydsTSB are both taking more customer focused approaches to the way they do procurement.
It is surprising that it has taken this long for this idea to be taken seriously in purchasing strategy. And I still see buyers being urged to think of the customer when approaching their supply chain management.
Is customer focus now a legitimate force in buying? Has this idea taken hold in your organisation? Or is it simply another fad, which will be replaced by another strategy in five more years?
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Customer is king and companies need to listen to their requirements and develop their products to the customers needs depending on the market that the company wishes to target.
Its also important at the design stage that procurement are involved from a strategic focus i.e supplier evaluations, identify new sources to replace unsatisfactory vendors on current products, use of current sources, different materials, cost drive downs, tendering, etc etc.
There are companies still out there where the first time procurement get to the see the new product is only once released to production – too late for components who design rights are only available from one source to leverage deal after the event.