Also at the Steering Group meeting of utility buyers last week, we discussed some interesting emerging trends in procurement (ask for the presentation if interested):
· Extending Category Management from a narrow tender and contract strategy to open up options and possibilities suggested by suppliers. This is sometimes called Market Informed Sourcing. Of course, both need a good understanding of market participants and their abilities, and the competitive market dynamics.
· Reducing the number of your suppliers is beneficial, but also having a means to understand the real capabilities of a wide group of potential suppliers is better. Just in case ....
· Shortages of good procurement staff means that for procurement to remain strategic, relevant and effective, you need tools that can help with internal purchasing procedures and discipline, such as Internal Qualification, which is a module in the new Achilles supplier management systems.
· The new Model Work Health and Safety Act imposes obligations to have accurate and up to date information about your contractors and sub-contractors. A couple of our key customers will implement the Registration system (TSMS) to help do that.