23 juni 2017
As you grow the cake everyone wins - with Vested® Sourcing
The prospect of a few beautiful summer months is still very attractive. I consider the period following a bit less attractive...
The prospect of a few beautiful summer months is still very attractive. I consider the period following a bit less attractive. For many commercial and procurement teams it signals the start of the annual contract reviews between suppliers and buyers. But despite the effort invested, not many seem to consider these meetings of much added value.
Last Monday outsourcing expert Kate Vitasek presented Vested® to a number of progressive companies and organizations. Vested® is a way of Sourcing that is based upon insights from skilled negotiators and – since the ‘50s, by a number of Nobel prize winners. Participants to the presentation were representatives from municipalities, energy suppliers, chemicals, ministries, hospitals and facility service providers.
Skilled negotiators, and particants to our ENS negotiation program already know what is recently also proven by science: growing the cake is smarter than fighting for the biggest piece. Nobel price winners John Nash (game theory, 1994) and Oliver Williamson (Transaction Cost Economics, 2009) have proven this statement scientifically. And also Procter & Gamble, Microsoft and McDonalds have accepted the added value that Vested® can bring.
However in The Netherlands there are not that many contracts between buyers and suppliers that meet the Vested® criteria. That’s a shame, as parties make higher expenses than necessary, and let potential benefits go by. Search, selection and implementation cost are often not considered when deciding upon tendering. And internal barriers within the organization appear as insurmountable, despite company statements that partnering is the way to go.
It is a fact that thousands of companies organize annual contract revision rounds. Our observation is that these are predominantly driven by potential reduction of visible cost like price and contract terms.
What was the effect of the measures that you have taken to reduce the top 3 of hidden expenses in your supplier-buyer relationship?
Are you curious to know how to engage into a Vested®relationship? Please contact Leo Wielstra, Vested® expert at Hovingh & Partners, at +31 6 514 78 372.
Lauded by World Trade Magazine as one of the “Fabulous 50+1” most influential people impacting global commerce, author, educator and business consultant Kate Vitasek is an international authority for her award-winning research and Vested® business model for highly collaborative and strategic relationships.
Vested® is promoted in The Netherlands by Hovingh & Partners, worldwide experts in Sales and Negotiation, andNEVI Purspective, worlds third purchasing association.