Tactical moaning
Last week we allowed your colleagues in sales a bit of a whine.
A survey shown to SM reveals that sales people feel they are “treated like commodities” by buyers. They say they’re defined purely on cost in a basket of similar goods.
I have no doubt that many of you will dismiss this as tactical moaning – sales types playing victim to the axe-bearing procurement barbarians. There is certainly some truth in this, but equally there must be some substance to the sales sentiment.
As a buyer, whatever technique you use, you are targeting the same outcome: a reduction in cost. Some may choose to be aggressive, others more intelligent, but it boils down to the same question: “What’s your best offer?”
And as the survey reveals, if sales folk feel commoditised, purchasers have them exactly where they want them.
With this in mind, I do have a little sympathy for the sales animal. Purchasers make all the right noises about sharing wealth with suppliers, working as partners and building relations based on much more than price. But it seems cost slashing prevails.
This presents a huge problem if what is being sold is not easily commoditised.
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I was going to take issue with the “it all boils down to” statement but deferred writing whilst I read other items.
It turns out my issue is addressed by Steve Foister in “Keep it Simple” where he states:
“Our job in procurement is about improving the quality, cost, delivery and service that our organisations offer their customers, by working with suppliers”
and
“Purchasing is a great place from which to change things across the organisation, develop new products and win new customers”
You can not do this if you commoditise the “sales animal”. Certainly cost is important but does lowest cost equally best product? Yes, of course we want the best offer but we also need to take account of the TCO and ROI – particularly if you accept Steve’s approach to winning new customer the ROI.
Is the difference that Steve talks about procurement and Jake about buying?!?
If sales claim that purchasing people are tactical, I will say sales are cunning. They try to hide the hidden defects of their products or service and just boast on strong points. If purchasing is animal, sales will be beast. This is my experience when I worked in the sales sector in past years. Had one been not lucractive in convincing buyers, one would have had missed the sales target. In other words, one would not have had been able to survive. Sales’ gievances are understandable.
After all, purchasing professionals have to be alert at all times. Agree or not?
Hopefully CIPS has capacity within its supplier relationship management education program to accommodate the old school thinking that seemingly still exists in the procurement community.