Here's how you can drive cost savings in Supplier Sourcing as a mid-career professional.

=> Collect Comprehensive Data Gather all available statistics and data related to procurement activities, including purchase orders, invoices, contracts, and payment records. => Identify Procurement Behavior Trends Analyze data to uncover trends in procurement behavior, such as seasonal fluctuations or repeated purchases. => Compare Year-to-Year Spend Evaluate spending over multiple years to identify changes and trends. Look for significant increases or decreases in spend and investigate the reasons behind them. => Focus on Top Suppliers Identify your top 10 suppliers based on spend volume. Assess their performance, reliability, and pricing compared to other suppliers.

I've always said that the best way to achieve something is by first understanding your environment. In this case, to achieve savings, it's important to know what we are spending, and surprisingly, few people do this. Understanding how spending behaves allows you to focus on those expenses that truly impact purchases. This enables you to concentrate efforts, negotiations, and strategies on key and critical expenses.

Using a Balanced Scorecard Approach is very important. Procurement is not only savings. Consider these criteria: => Innovation: Evaluate suppliers' ability to provide innovative solutions, products, or services that can offer a competitive edge. => Sustainability: Assess suppliers based on their environmental and social responsibility practices. Consider their efforts in reducing carbon footprints, waste management, and ethical labor practices. => Financial Stability: Consider the financial health of the supplier to ensure they are capable of maintaining operations and fulfilling long-term commitments.

My favorite topic—I consider myself passionate about supplier management. Part of my motto is that if you don't know how your suppliers behave, how can you be sure they are the right ones? This is why evaluating your suppliers is so important. Understand how they behave, their results, and their numbers. This gives you a clear and precise picture for making decisions that aim to achieve savings and improve processes.

By leveraging procurement tools, organizations can: => Avoid Mistakes: Streamline supplier evaluation to minimize errors and inconsistencies in data analysis. => Visualize Comparisons: Quickly compare supplier responses and metrics to make informed decisions. => Adaptability: Customize tools for specific project needs, particularly in service-related procurements where requirements may vary widely. => Enhance Efficiency: Speed up the procurement process by automating repetitive tasks and workflows. While there’s no one-size-fits-all tool, integrating tailored procurement solutions can significantly improve the effectiveness and outcomes of service-related procurement projects.

When I started in procurement and supply chain, my main complaint was that we had a Ferrari-like software but were using it as if it were a Renault 4. This, my friends, is what happens in many organizations. Take full advantage of the technology you have. I can assure you that of the sourcing or procurement software you have, you haven't even exploited 50% of its potential. Once you see everything it can do, you'll realize how much optimization, control, and time you'll gain after using it correctly and completely.

A negociação estratégica é fundamental para gerar redução de custos com seus fornecedores. Iniciamos o processo de Sourcing medindo mensalmente os fornecedores demonstrando via Power BI o ganho em saving para a empresa. Com isso conseguimos identificar em uma curva ABC os fornecedores com maior necessidade de negociação para alavancar a margem de lucro da empresa no processo de compras.

Negotiate strategically to drive cost savings in supplier sourcing as a mid-career professional. Research market prices and supplier backgrounds. Establish clear objectives and leverage your experience. Build strong relationships with suppliers for better terms. Use data-driven arguments and explore volume discounts or long-term contracts. Stay flexible but firm. Effective negotiation balances cost savings with quality and reliability.

Dale Carnegie, in his book "How to Win Friends and Influence People," mentions an epitaph that says, "Here lies someone who achieved many things in life because they surrounded themselves with people better than themselves." This phrase is simply impactful and shows us the importance of building genuine and valuable relationships. Throughout your professional life, this will be an important factor, especially if you manage supplier relationships and seek to achieve savings in your negotiations.

=> Communication as the Key: Establish open, transparent communication channels to build trust and understanding between parties. => Anticipate Challenges: Proactively anticipate supplier needs and potential challenges, such as price increases, through regular dialogue and feedback. => Mutual Benefits: Focus on creating win-win scenarios where both parties benefit from the relationship’s longevity and trust. => Efficient Management: When faced with price increase requests, a strong relationship allows for constructive negotiation and mutual agreement.

=> Continuous Learning: Dedicate time to reading industry publications, blogs, and research reports to stay updated on emerging trends and innovations. => Self-Education: Take advantage of online courses, webinars, and workshops to deepen your knowledge and skills in category management. => Networking: Engage with industry peers, attend conferences, and participate in professional associations to exchange insights and learn from others.