It takes two to tango - is partnering with procurement BPO vital to increase stakeholder satisfaction?
Imagine the typical sourcing and procurement (S&P) function of any firm to be akin to a large ballroom. Also assume all the stakeholders of S&P functions as the spectators who are interested to know how the S&P performs for them and of course want to feel satisfied with the performance. Now imagine that there are 4 performances lined up for the 4 main spend categories -Direct materials, Indirect materials and services, MRO, and capital equipment. After seeing the performances, the spectators are likely to either cheer or boo, depending on their satisfaction levels.
What are the possibilities here? Many varying performance levels as intuitively we can imagine. For example, there could be lot of cheers for say the Direct materials performance but not for others, and combinations similar to this. Another possibility could be that the performances are completely solo (i.e. by a captive S&P team which takes care of all 4 spend categories) or tango (i.e. S&P team comprises of a captive and procurement outsourcing firm's combination for all or few of the 4 spend categories). Various other possibilities also exist around the standards of dancing. The tango could be an Argentine tango or a Ballroom tango where steps, speed and co-ordination differ thereby providing a varying visual treat. The spectators/stakeholders can be qualified experts in both to evaluate the performances objectively or can just view a dance as a nameless performance with expectations of seeing something that is good as per their own standards/frame of references.
Sounds familiar and easy to relate to the usual but complex buyer-stakeholder interplay across most of the firms in any industry vertical (i.e. discreet, process or service)? What do you think is the likelihood that performances most likely to be cheered would be solo or tango? Why would you think so and what would you recommend to any firm in general and some firms in some particular industry vertical to treat as vital to obtain an all-round, pleasing and non-varying performance? Invite all to discuss these 3 questions.