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7 May 2014 | Gurjit Degun in Las Vegas, US
Google’s supplier sourcing team has used “attribute mapping” to prioritise the services it provides for its key stakeholders and improve relationship management.
David Natoff, head of procure to pay at the internet business, said he first picked out the “platinum stakeholders” at the company. He then presented them with a list of services and asked stakeholders to order these in terms of importance. They were also asked to rank the sourcing team on each service.
“This enables us to think about prioritisation and think, ‘should there be areas where we should divest?’,” Natoff told the annual Institute for Supply Management conference in Las Vegas, US. “And then based upon the resourcing that you save, you could use them to invest in other areas.”
He added: “This has really been a core piece for us. Moving out of what I would say was process facilitators where we just doing RFP shopping and generating rate reductions [savings] to really trying to understand what is it that the business wants.
“The reality is that by delivering on the services that the business wants, a fantastic by-product is rate reductions. What is really interesting is that in Q1 this year we have achieved more rate reductions than ever before without focusing on rate reductions as a core measure. A lot of this has come from these brand new platinum stakeholders where we really invested in customer relationship management last year.”