Procurement - Friend or Foe?
If you are selling into large organizations and want to expand those partnerships, then you are guaranteed to bump into procurement.
Procurement is not your enemy! Let me repeat - procurement is NOT YOUR ENEMY!
You don’t need to avoid them in the evaluation process, even if your champions are procrastinating in getting Strategic Sourcing involved.
Sales and Procurement actually have a lot in common! Procurement’s job is to find the best value for the company. A salesperson’s job is to provide the best value to that company. WIN-WIN! Not only should you be working together - by collaborating, you can achieve better outcomes. Who knows, your procurement partner may even become a guide in your next sales cycle there.
Here at UpTempo, we have combined 40+ years of sales leadership and strategic sales experience. Having learned many lessons through trial-and-error, here are a couple tips:
Align on goals and objectives
Procurement is often seen as the “bad guy,” wanting to commoditize your product and squeeze you for every penny. It is imperative that we nix this perception. Instead, build trust over your common goals - helping the business achieve its outcomes. A knowledgable and trustworthy Category Manager on the Procurement team can help you circumvent pitfalls along the way.
In order to build trust, you need to make sure your contact is aligned on the current challenges and desired project outcomes.
How close is the Category Manager to your Champion(s)?
Do they fully understand the opportunity cost if the problem goes unsolved? This understanding may help your relationship with the business, leading to additional introductions within their company.
Once you are aligned, it is important to ensure Strategic Sourcing understands your product and the value it can provide to their organization.
Build a long-term relationship
Don’t play games with Procurement. Think long term. Be responsive and transparent. Once they trust you and understand the value you and your product can bring to the company, they may proactively bring you into future conversations.
Priorities and budgets can change over time, so make sure you are staying in touch with your Procurement contacts. These relationships can be really helpful during expansion and renewal discussions in years to come.
Check out this post and other resources like it directly on UpTempo’s website: https://www.uptempo.work/resources/procurement-friend-or-foe