A Sales/Procurement Training Experiment

Editor’s Note: Jim Baehr is a partner with Sourcing Strategies Group LLC

This piece was roughed out before the March 13, 2020 COVID-19 Emergency Declaration. It's intent at the time was to call attention to an “experimental training course” conducted in mid-January by the Pittsburgh Chapter of the Institute for Supply Management (ISM).

Following the declaration the relevance of the piece became uncertain. It may, in some ways be more significant now.

The training was titled Demystifying the Roles of Sales and Procurement and the overview for the session read as follows: “Designed to bring together Sales and Procurement professionals for the purpose of establishing a better appreciation of both sides of the Sourcing process.” The goal was to enhance awareness of the needs and challenges dealt with daily by both sets of professionals.

Much credit goes to ISM Pittsburgh for having the mettle to bring together Sales and Procurement professionals in the same training session. For several years both Chief Procurement Officers (CPOs) and Chief Sales Officers (CSOs) have been telling us there's a need for collaboration between Sales and Procurement Professionals. Wouldn't it go a long way if we brought both disciplines into the same training session to examine if Sales and Procurement are actually two sides of the same Sourcing coin?

Despite “best efforts” (see Black's Law Dictionary) to achieve a 50/50 representation, the breakdown was about 70% Procurement and 30% Sales. The thumbs up for wanting to know more about the professional relationship went to the Procurement Professionals. The group truly demonstrated a mature savvy. The participants were engaged and didn't hold back in challenging the status quo.

Three key observations from the training:

1. There was a receptivity to a new definition of Sourcing - Bringing Sales and Procurement into the same session, it didn't seem practical to draw dividing lines with two separate and distinct definitions - Sales does this … Procurement does that. Instead the training addressed Sourcing as the comprehensive process of selling and buying, to deliver services or goods based on established requirements to obtain benefit while addressing a business need. The underlying message - both disciplines are in the Sourcing business and should be focused on outcomes. Being driven solely by Sales quotas, or Procurement savings objectives only promotes the divide and moves both away from striving for innovation and delivering value.

2. There's an emotional disconnect between Procurement and Sales … internally! - While not covered in the training content there was much discussion about how the Sales and Procurement functions within the same company operate miles apart. Yes, they sometimes come together to talk about annual forecasts or operational plans but not much more, unless there's a supply problem. The discussion was animated, and the topic was viewed as a complete mystery as to why things are the way they are. It validated a July 2018 SCMR post The Simplest of Questions for Supply Chain Managers.

3. The Sales and Procurement processes are unduly perceived as separate, distinct and without similarity - There's a lack of appreciation for the parallels in the Selling and Buying processes. There's a conspicuous disconnect that comes from believing that Sourcing Professionals work in mutually exclusive environments - Sales sells and Procurement buys. The reality is there are clear-cut similarities in the Pre, Sell/Buy and Post stages of the Sourcing process. When properly recognized there's a greater likelihood that the performance of both sides will be more efficient and effective - especially when it comes to implementation of an agreement.

Some of the other learning objectives included: appreciating the influence of stereotypes and personalities; recognizing the differences and impact of Sales and Procurement technologies; and, looking into the future state of Sales and Procurement. This last one - the future state is where it all may change due to the pandemic.

Any expectation for more collaboration in the post emergency sourcing environment will be a push. Those who were around during the 2008 financial crisis remember asking or being asked “what about a price cut?” A recent blog about a conversation between David Brock of Partners in Excellence and Brent Adamson of Gartner revived some vintage thinking as to what may come next for Sourcing relationships.

When a Sales Professional asks “How can I help?” think about this … will the Procurement Professional know what help to ask for? Will the question be grasped in the context of collaboration, innovation or value? Maybe or maybe not. Or, will the response attend only to the short-term pricing need?

The problems we'll face in the post pandemic world may look the same but contextually they'll be very different. Will we as Sourcing professionals develop answers collaboratively and in a manner relevant to new situations? Will it be pre-pandemic business as usual? Was the experimental training ahead of its time? Just in time? Or, too little too late for what will become a profoundly different Sourcing environment? Only time will tell.

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