Supply Chain Management

"We have budget for $199,000," the procurement manager spat at me. I had a $325,000 deal forecasted, and we had 7 days left to close it. That was June, 2020. End of quarter. Egg about to be smeared all over my face. I paced around my house while my family swam at the pool. Cursing under my breath. Back then, I knew every negotiation tactic in the book. But that was the problem: My negotiation "strategy" was actually what I now call "random acts of tactics." A question here. A label there. Throw in a 'give to get.' There was no system. No process. Just grasping. Since then, I now follow a step by step process for every negotiation. Here's the first 4: 1. Summarize and Pass the Torch. Key negotiation mistake. Letting your buyer negotiate with nothing but price on their mind. Instead: Start the negotiation with this: “As we get started, I thought I’d spend the first few minutes summarizing the key elements of our partnership so we’re all on the same page. Fair?” Then spend the next 3-4 min summarizing: - the customer's problem - your (unique) solution - the proposal That cements the business value. Reminds your counterpart what's at stake. They might not admit it: But it's now twice as hard for them to be price sensitive. After summarizing, pass the torch: "How do you think we land this plane from here?" Asking questions puts you in control. Now the onus is on them. But you know what they're going to say next. 2. Get ALL Their Asks On the Table Do this before RESPONDING to any "ask" individually. When you 'summarize and pass the torch,' usually they're going to make an ask. "Discount 20% more and we land this plane!" Some asks, you might want to agree to immediately. Don't. Get EVERY one of their asks on the table: You need to see the forest for the trees. “Let’s say we [found a way to resolve that]. In addition to that, what else is still standing in our way of moving forward?” Repeat until their answer is: "Nothing. We'd sign." Then confirm: “So if we found a way to [agree on X, Y, Z], there is nothing else stopping us from moving forward together?" 3. Stack Rank They probably just threw 3-4 asks at you. Now say: "How would you stack rank these from most important to least important?” Force them to prioritize. Now for the killer: 4. Uncover the Underlying Need(s) Ignore what they're asking for. Uncover WHY they're asking for it. If you don't, you can't NEGOTIATE. You can only BARTER. You might be able to address the UNDERLYING need in a different, better way than what they're asking for. After summarizing all of their 'requests,' say this: “What’s going on in your world that’s driving you to need that?” Do that for each one. Problem-solve from there. P.S. These 7 sales skills will help you add an extra $53K to your income in the next 6 months (or less) without working more hours, more stress, or outdated “high-pressure” tactics. Go here: https://lnkd.in/ggYuTdtf

Supply chains are not just stretched. They are exposing the unprepared. What you may call a disruption, Resilient companies call a stress test. When tariffs spike and disruptions strike, companies that optimized only for cost are now paying the price in -> Delays -> Lost trust -> Broken promises A reactive supply chain is a liability. A proactive one is a competitive advantage. Here is how resilient organizations respond at every level: C-Suite: -> Shift your mindset. -> Supply chain is a strategic engine. Invest in diversified, localized, and tech-enabled ecosystems that can flex under pressure. Mid-Level Leaders -> Anticipate the breakpoints. -> Cross-functional coordination and early scenario planning are not optional, they are operational lifelines. Individual Contributors -> Your proximity to pain points is your power. -> Raise issues early. Escalate what others overlook. Supply chain visibility starts with you. Supply chains are no longer linear, they are living ecosystems. To compete, companies must evolve: ✅ Move from transactional to collaborative vendor partnerships ✅ Integrate AI and predictive analytics for real-time response ✅ Make agility a measurable KPI, not a buzzword ✅ Embed contingency planning into culture, not just crisis manuals The companies that win in this era will not be the cheapest or the fastest. They will be the most adaptable. How is your organization building supply chain resilience today? 👇🏻 ♻️ Share to help others shift their strategy 🔔 Follow Izabela for more insights

Disruptions in the Red Sea have resulted in a 52% increase in shipping costs between Asia and North America’s East Coast and a 173% increase for routes between Asia and Northern Europe. Recent research shows that all-in costs could reach anywhere 2.5 to 4 times the normal costs for this time of year —  not to mention the environmental impact of extended trade routes. Of course, the supply chain industry is no stranger to navigating these types of disruptions. Even though we’re dealing with a new crisis, over the past few years, Procurement and Supply Chain professionals have gotten really good at weathering storms. We now have current best practices and historical knowledge to lean on. Here are a few tips for my fellow #procurement and #supplychain leaders to maintain resilience as our #permacrisis reality continues: - Collaboration remains critical. Stable, consistent communication and supply chain collaboration across your markets can drive increased alignment, supporting successful cost containment and efficient adaptation to changing business needs. - Understand where risk is really coming from. Having visibility through each tier of your of your supply chain will enable you to both accurately assess and manage potential risks and uphold your priorities.   - Lean into your network. It pays to maintain a robust supplier community so that you have options open when it comes to unexpected disruption. If you are looking to expand your network, SAP Business Network is the perfect place to start for businesses across the globe. - Continue to keep a pulse on the geopolitical climate. It seems that geopolitical shifts will continue to play an increased role in supply chain risk. Even the smallest business is impacted by global dynamics. I would love to know how you are preparing to weather the whiplash of supply chain disruption.

The key aspects of buyer-supplier collaboration: 1. Shared Goals and Objectives: Collaborating partners work towards common goals such as cost reduction, quality improvement, innovation, and supply chain resilience. Both parties align their strategic objectives to achieve these goals. 2. Open Communication: Effective communication is crucial for collaboration. Buyers and suppliers share information about demand forecasts, production schedules, inventory levels, and potential disruptions. This transparency enables better planning and coordination. 3. Mutual Trust: Trust is the foundation of successful collaboration. Both parties need to trust each other’s capabilities and commitment to the partnership. Trust is built over time through consistent performance and reliability. 4. Joint Problem Solving: When issues or challenges arise within the supply chain, collaborators work together to find solutions. This can include addressing quality problems, supply chain disruptions, or cost overruns. 5. Geographic Considerations: The location of suppliers can impact collaboration. Proximity can lead to closer relationships and faster response times, but globalization may require more advanced coordination and communication efforts. 6. Supplier Selection and Evaluation: Choosing the right suppliers is crucial for successful collaboration. Buyers must carefully assess potential suppliers based on criteria such as capabilities, reliability, financial stability, and alignment with the organization’s values and objectives. Regular supplier performance evaluations are also essential to ensure that expectations are met and improvements are identified. 7. Risk Sharing: Collaborative relationships often involve sharing risks and rewards. For example, suppliers may share the burden of holding excess inventory or invest in new technology to meet the buyer’s requirements. 8. Continuous Improvement: Collaboration encourages a culture of continuous improvement. Partners regularly evaluate their processes, identify areas for enhancement, and implement changes to drive efficiency and innovation. 9. Supplier Development: Buyers may invest in supplier development programs to help their suppliers improve their capabilities. This can include providing training, technology, or financial assistance to enhance the supplier’s performance. 10. Long-Term Perspective: Buyer-supplier collaboration is often seen as a long-term partnership rather than a short-term transaction. This long-term perspective helps build stronger relationships over time. Why 10?! Just worked out that way.

As Tariffs Disrupt the Flow, 4 Supply Chain Moves Every Executive Should Make: Tariffs aren’t just a trade issue, they’re a leadership one. As an executive coach, I work with leaders navigating disruption to become more effective in how they think, decide, and lead so their organizations and teams perform at the highest level. Right now, global supply chains are under pressure from shifting tariffs, reshoring mandates, and geopolitical realignment. What used to be a smooth, just-in-time operation is now a daily exercise in adaptability. Here are four strategic shifts every executive should be considering: 🔍 1. Audit Hidden Dependencies Most leaders track Tier 1 suppliers—but disruptions often originate in Tier 2 or Tier 3. Map the full supply chain to understand where risks lie beyond what’s immediately visible. 🌎 2. Go Beyond “China-Plus-One” Relocating from China to Vietnam or Mexico may ease tariff exposure, but true resilience requires a multi-regional approach. Diversify sourcing and distribution to withstand geopolitical shocks. ⚙️ 3. Align Procurement with Enterprise Strategy It’s no longer just about cost. Factor in tariffs, political stability, and fulfillment risk. Ensure procurement and strategy functions are working in tandem—not in silos. 🧠 4. Embrace Supply Chain Intelligence AI tools and digital modeling can help you simulate scenarios and plan proactively. Today’s smart supply chains aren’t static—they’re dynamic, data-driven, and decision-ready. Executives who succeed in today’s environment are the ones who build resilience into their operations and clarity into their leadership. Tariffs may be the current headline, but adaptability, foresight, and strategic alignment are the lasting differentiators. If you are looking for a partner to support you in making your supply chain and your leadership more future-ready, let's connect.

𝗩𝗲𝗻𝗱𝗼𝗿 𝗖𝗼𝘀𝘁, 𝗤𝘂𝗮𝗹𝗶𝘁𝘆, 𝗮𝗻𝗱 𝗧𝗶𝗺𝗲... 𝗖𝗮𝗻 𝘄𝗲 𝗵𝗮𝘃𝗲 𝗶𝘁 𝗮𝗹𝗹??? Ever heard of the Iron Triangle? (I'll give you a hint, it's not Bermuda's neighbor in the Atlantic Ocean!) Project Managment folks may be familiar with the Iron Triangle concept. Procurement peeps, we can also apply this to vendor contract negotiations. Envision a triangle with each corner representing cost, quality, and time. Changes to one corner usually impacts the others. Having flexibility in one corner, though, can strengthen the others. Use historical data for negotiation planning, making informed choices that balance the triangle based on your business needs. 𝗖𝗼𝗺𝗺𝗼𝗻 𝗻𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 𝗹𝗲𝘃𝗲𝗿𝘀 𝗳𝗼𝗿 𝗜𝗿𝗼𝗻 𝗧𝗿𝗶𝗮𝗻𝗴𝗹𝗲 𝗼𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻: ➜ Tiered pricing models for greater flexibility. ➜ SLAs with penalties/ incentives to encourage vendors to exceed performance targets, minimal cost, maximum impact. ➜ Paying early to secure discounts. ➜ Efficiency gain clauses, typically requiring YOY gains for the duration of the contract. ➜ Right to audit clause to ensure compliance w/ minimal cost (if any). ➜ Flexible termination language & transition support. Ensures your pocketbook and operations don't suffer if things go south. 𝗔𝗻𝗱 𝘁𝘄𝗼 𝗯𝗼𝗻𝘂𝘀 𝘁𝗶𝗽𝘀: 1. If you're constantly spinning your wheels with subpar vendor quality, rework costs are likely eating into your expected ROI. Keep a close eye on total cost of ownership, the vendor may be costing you more headache than it's worth. 2. Investing in vendor relationships is key. Strong partnerships foster flexibility and innovation, translating to better quality at reduced costs. Win\ win all around! --------------------- What other strategies do you use to balance cost vs quality? Let me know in the comments! 👇

How do I recommend you evaluate a potential technology provider? Over the years, I've focused on six key dimensions when completing my due diligence of any tech provider: 1. Requirements vs. Vendor Capabilities - I typically recommend a customized RFP based on customer / user requirements, followed by some limited scope POC. If the vendor is unwilling to support a POC, then I recommend disqualifying them. - Engagement with end users during RFP process is critical, which includes involving them in some form of vendor scoring exercise. - Ensure you also engage all the necessary IT stakeholders from an architecture and security perspective as engaging them too late could throw a big wrench into your process. - Criticality of this dimension: 30% of total vendor score 2. Business Value and Pricing/License Options - Will the vendor help you build a business case to justify a spend? If not, this is a huge red flag. - Ensure your financial evaluation method aligns to your CFO's preferred method (TCO vs. ROI vs. NPV vs. IRR, etc.) - License restrictions, exit options, pricing levers - Is the vendor pricing roughly aligned to how others price? - Does the pricing / licensing model support flexibility for future growth? - Criticality of this dimension: 25% of total vendor score 3. Roadmap & Strategic Alignment - Does the vendor have a well-articulated roadmap, and does it align to how you see your requirements evolving in the future? - Does the vendor roadmap align to where you see the market heading? - Does the vendor solution, and their roadmap align to your long-term data and IT strategies? - Criticality of this dimension: 10% of total vendor score 4. Market Feedback - customer testimonials and references - analyst reviews - peer insights, reviews, social media - Criticality of this dimension: 15% of total vendor score 5. Ongoing Support - what is the vendor support model? - do you have an assigned customer success manager? - how dedicated is the vendor to your success? - Criticality of this dimension: 10% of total vendor score 5. The overall vendor 'vibe' - difficult to quantify and beware of biases, but also listen to your gut - does your experience with the vendor feel like a partnership, or a transaction? - how important is your success to the vendor? - Criticality of this dimension: 10% of total vendor score What have I missed? What else would you add? #cdo #chiefdataofficer #rfp

Tech sustainability is no longer just about environmental and social issues — it’s also about how well your tech helps your organization deliver value. That’s what jumped out at me in Gartner’s strategic tech trends report for 2024. Businesses are broadening their view of sustainability, and the kinds of tech choices they make are top of mind. As you evaluate tech vendors, here are 4 questions to keep in mind: 1. Does this vendor prioritize flexibility or lock you into a long-term contract? 2. Will they protect your investment by keeping your data safe and keeping their product operational 100% of the time? 3. Will they continue to innovate or stay the same product you purchased at the outset? 4. Will it take an unnecessary amount of time for the tech to deliver value? Based on their answers, you can determine if their tech is sustainable for your business (or not). Leaders, what conversations are you having about sustainability in your tech stack? #tech #technology #techcommunity #saas #innovation

The Office of Management and Budget (OMB) has issued new mandates regarding government agencies' use of artificial intelligence (AI). One of the most significant mandates is for agencies to publicly report their AI usage, including the risks involved and how they manage them. This move will help ensure transparency and accountability in AI usage.   One critical area that needs to be adequately addressed is the federal government's procurement processes to execute AI mandates. Procurement holds significant sway over markets, particularly in their early stages of development. As industry leaders debate setting standards for these technologies, the government should work with industry to help establish a baseline for these crucial discussions.   AI procurement frameworks should also be established that prescribe the terms and conditions applying to any subsequent AI contract and allow the pre-vetting of providers against predefined criteria that should include ethical requirements and risk management.   Pre-market engagement is also often essential in helping the government describe the problem and narrow down the tasks that AI may be able to assist with. This approach will allow the government to work better with potential suppliers, communicate what is being asked for and why, and highlight where the gaps are. Effective RFIs are fine, but real engagement through one-on-ones and listening sessions with industry instead of just paper-based research will impact and provide the best opportunity to understand and mitigate potential AI risks.   Risk management starts during need identification. Industry would be wise to evolve their BD processes to help the government better understand risk profiles and ethical AI earlier in the process.   #AI #Government #Accountability #Transparency #Procurement #Frameworks #AIimplementation #premarketengagement #artificialintelligence #businessstrategy #govcon

Recently GCs have been moving away from the term subcontractors to trade partners. It started coming about on design-build projects where trades were being onboarded a lot sooner and partnering on the planning of the project with GCs, but now it's become a lot more widespread. I think GCs think that when their marketing teams and departments call subcontractors trade partners that it automatically means that they are partners. My opinion is that the naming doesn't matter. I'm not actually against the name "trade partner" instead of "subcontractor", but I am against using the name "trade partner" incorrectly. What matters is how you actually treat your "subcontractors" or "trade partners". GCs should earn the right to call someone a partner by: ✅ Paying on time. ✅ Communicating effectively. ✅ Providing the best contracts possible for their subs by having proactive conversations with their clients. ✅ Advocating for you to the client/owner on COs you submit. ✅ Looking out for work that will benefit their subcontractors. On the flip side, it's not just on the GCs to earn their right to call subs partners. Subcontractors also need to earn the title of partner by: ✅ Providing quality workmanship. ✅Meeting deadlines that they agreed to. ✅Having clear communication. ✅Properly documenting their work per the contract. ✅Being willing to problem solve with your GC because problems will come up. Having true partners makes every party win. But please don't call your subcontractors partners unless your company is actually forming true partnerships. There are plenty of companies out there that are creating true partnerships, but there are also a lot that aren't.