1) The article discusses the importance of following a strategic sourcing process, such as the 7-step model, to find the best supplier. 2) It notes that steps 1, 2, 3, and 7 of the 7-step process are often not fully carried out, leaving room for error in selecting the right supplier. 3) By thoroughly completing all steps of the sourcing process, including developing category profiles, pre-selecting suppliers, setting sourcing strategies, and following up on contracts, buyers can ensure they find the best suitable supplier for their needs.

1. Mirror, Mirror on the wall….
COLUMN | Willy Busser 21 February 2017
Who is the best supplier of them all? It
all begins with a proper way of Sourcing
to find the, for YOU, most suitable
supplier.
There are many Procurement (Sourcing) models. The
most universal and used model is the ‘7 Step Strategic
Sourcing’ developed by A.T. Kearney in the 1990’s. This
model has been around a long time and a lot has
happened since then. Nevertheless and in spite of the
name of the model, every self respecting buyer who aims
for a successful outcome needs to follow a Procurement
process (for goods and services that matters) that at least
will consist out of these 7 process steps:
In practice it often turns out that steps 1, 2, 3 and 7 are
partially or not correctly carried out.
The category profile in step 1 is not complete or the
spend that is not touchable is included. In step 2 the pre-
selection is not thoroughly done and wrong selected
suppliers participate. Step 3, developing the sourcing
strategy and RFx documents is not done or not
thoroughly enough with cross-functional involvement.
Often caused due to the fact that the buyers or the
organization of the buyers do not take the time it needs
to set-up the right strategy and/or RFx documents. And
last but not least if a contract has been implemented no
adequate follow-up (step 7) has been carried out by
performing regular Supplier Relationship / Performance
Management securing continuous improvement.
The adoption of the model tells the supplier about the
type of buyers they are dealing with and the sales
approach the supplier will adopt. That is because it
typically signifies both the power of the Procurement
Department in an organization and the sophistication of
the organization's approach to buying.
Unfortunately there is no mirror to determine who is the
best suitable supplier. Yes, there might be a good past
experience with a supplier or a reference from a
colleague or friendly organization. But if at the end it
turns out not to be as expected, Procurement is the one
who is responsible for it. So to find the best you have to
take the time to go thoroughly through this process. It is
an exciting and interesting process which will teach you
a lot about the market and the selected suppliers. And at
least as important is that you can show that you have
done everything to achieve a successful selection /
outcome.
What would happen for example if a supplier approached
each sale with the expectation the prospect was going to
follow many, if not all of the 7 steps? Specifically, how
would it impact on the sales strategies employed? Well
for a start, suppliers would likely ask slightly different
questions as they know what is coming and this supplier
would have a noticeable lead compared to you.
The supplier who is familiar with the process, is in my
opinion, a party leveling easier with then the one who
doesn’t. I would fool myself thinking that it is a benefit
doing business with a supplier who does not know the
process.
By following the process you will also control the
communication. Communication is the most important
aspect in business. Having your internal stakeholders and
colleagues in one team and forming one front towards
the supplier. Convince your organization to take time and
effort cooperating together to establish the best possible
for the business.
Don’t let time being the limiting factor to achieve the
best possible and making sure it stays that way!
- Willy Busser