It can often be tempting to avoid the use of a complex event and to include an Excel bid sheet or question list attached to the event for the supplier to complete and return. Whilst this is easier to setup and for suppliers to respond, it loses out on the benefits of all of the system analysis and validations. This often results in supplier data entry errors, and you will need to spend time building reports after the event so analysis can be performed. Additionally, there is always the risk of errors in building these off line reports.
It is important to consider the work that you need to put in to train and support each of your suppliers when running a complex event. Running effective rounds of events to qualify suppliers before running the complex event itself ensures only the right subset of suppliers are involved. This can greatly reduce the amount of support you need to provide during the event.
Suppliers may push back on taking part in complex sourcing events due to the effort they must put in to take part. This can be avoided by putting in place a change management strategy that:
If you aren’t measuring the success of your events, you will not know if the time and effort put in by your business and its suppliers provides any value. In order to measure progress and success, we recommend a number of basic KPIs that should be measured from the outset – and on a regular basis – to demonstrate success and help identify any possible areas for improvement:
In addition to measuring success, it is imperative to actually bank your savings. Too many companies don’t follow up on their sourcing event to:
If not properly followed through to contract, compliance, and finally banking the savings, all value is lost. This is one of the BIGGEST pitfalls and has to be avoided.
If you can avoid these top five pitfalls when arranging and running your complex sourcing events, you will have a much better chance of event success and continued buy-in from internal stakeholders as well as the suppliers themselves.
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