We’re back at the cookie manufacturer.
Things are going well.
We have a distributor who’s gotten our product into Targets nationwide.
But our procurement team is feeling strained.
First, it’s composed of a former business analyst and electrical engineer…they’re good at their job but unaware of ore strategic thinking for procurement.
They are also responsible for managing all of the direct and indirect spend. Meaning the plastic forks in the office get as much attention as the flour that’s needed for making our cookies.
They don’t have a category strategy or management philosophy.
They’re too busy buying more flour to make sure production doesn’t stop to run competitive RFQs.
They don’t know if they’re getting a good deal from a supplier.
Let alone time to sit down and forecast future sales numbers to understand how much more flour they’re going to need in 6 months.
They don’t know what % of deliveries from their suppliers haven’t been on time or up to spec.
And the sun rises and sets on a desolate land in procurement.