Network Procurement® is a simple process to describe but takes the expertise we have developed to implement. Implementation includes ongoing formalization of the long standing objective that most companies and suppliers have always sought to obtain across their organizations:
- Realizing mutual improvements in quality, efficiency, and reliability
- Cost reductions and the elimination of waste – especially unnecessary overhead
- Ongoing business without the sales and marketing costs of maintaining the relationship
The Network Procurement® Process takes 6 to 9 months to implement and involves:
- 1. Line up your entire organization behind the premise that either existing suppliers or any supplier willing to make the commitments under the NP program will receive a commitment for your ongoing business. SMI provides the analysis, rationale, and justification for eliciting this commitment from your entire organization.
- 2. Demonstrate to the suppliers that there will be one way of doing business going forward – on NPAs [Network Procurement Agreements]. SMI educates the suppliers to understand the new reality and enlightens them as to the fact that the Network Procurement® way is the best way for them to engage in the process and win business going forward.
- 3. Our philosophy is forward thinking. The Symposium is designed to inform the suppliers exactly what the process is all about, the “win‐win” nature of it, and the fact that a supplier winning the agreement will benefit.
- 4. SMI is a third party that has conducted over 1,000 successful global programs. Thousands of suppliers have won the agreements, and billions of dollars worth of agreements have been put into place. We have the credibility to conduct these programs; our approach is not a “flavor of the month” approach.
- 5. Our approach is a “positive leverage approach”. A supplier enjoying 100% of your business will know that they will lose 100% of your business, or part of it, if they fail to answer the message and fail to win an agreement.
- 6. The Network Procurement® Process facilitates an ongoing focus on cost reductions and improvements, even in the most entrenched business relationships. Suppliers on NP agreements understand that the business is theirs to lose, and this realization will cause most of them to work diligently to secure this business. This is the power of the process.