Procurement and sales : perceptions, myths and realities.

We have to admit that, despite their interdependence and relationship, the sales and procurement departments, which exchange and work together on a regular basis, don’t always flow together perfectly. Our aim is to deconstruct any implicit preconceptions that may exist between sales specialists and their purchasing counterparts, and to suggest a few avenues to explore in order to optimize these relationships. 

As a supply chain management consulting firm, our activities at J2 bring us into close contact with purchasing and procurement departments, as well as human resources and sales. To put it simply, at J2, what we offer as a service (and therefore what we sell) is purchasing! 

We’ll be looking at the relationship between a sales department and a purchasing function within the same organization, as well as those that are more of a supplier-customer relationship. 

Procurement : a necessary evil?

Let’s take a look at some of the feedback from the field.

Some sales reps may see the purchasing department as a major obstacle to the progress and closing of their deals. The idea that the involvement of purchasing specialists will slow down and complicate the process is still very tenacious. It is anticipated that supply chain experts will lengthen deadlines by multiplying approval levels, and that the prices they are seeking to negotiate will inevitably be lower.

Of course, we understand that a quick deal is good for sales reps. That being said, purchasing experts understand that achieving a win-win deal will have a more significant long-term impact on both sides of the business relationship. 

“I’ll buy or I won’t buy”

At J2, we recommend avoiding as much as possible that a transactional operation turns into an unequal dynamic. At times, it may seem that the purchasing person acts as if he or she has the upper hand in the relationship, in a “I’ll buy or I won’t buy” mode. 

But let’s not forget that purchasing specialists are trying to fill a need, and sooner or later, the item or part in question will have to be purchased! If communication is fluid and transparent, prices are appropriate and the quality of the interpersonal relationship, the service and the product are all there, why wouldn’t someone do business with you?  

Collaboration pays off

Sales people who see buyers as potential allies, rather than as an obstacle to be overcome, demonstrate their agility. The buyer can be a great facilitator of the sales team’s work, becoming a privileged channel of communication who can clearly highlight the details of the need to be met and the best way to do so. 

Sales reps will then know more precisely and more quickly whether the products they have to offer are suitable. At the end of the day, it’s in both sides’ interests to ensure that the best possible product is obtained or offered to meet the need, while offering the best possible price. A strong, stable, lasting and trusting relationship is an undeniable marker of success!

PSSST! 

Have you noticed that we’ve just turned purchasing specialists from an annoying third party to a true transmission belt for innovation? That’s what J2 is all about! 

And in-house? 

Valuing the work of purchasing experts starts internally, and this means fostering open communication in order to nurture the perceptions and relationships that an organization’s various departments have towards them. 

Consider that your purchasing specialists are not simply there to place purchase orders, and that they are often at the crossroads of the operational, engineering, production and quality assurance departments! This position creates a situation in which they are often dependent on, and interdependent with, many of their colleagues! 

Let’s face it, your team turns to the procurement department if delivery deadlines aren’t met, if inventories aren’t maintained at optimum levels, if items (or reserves of these items) run out, if invoices aren’t paid on time, if a part doesn’t conform to standards or expectations, and so on. The list of their responsibilities is long, and it’s only natural that they should be expected to meet them, but the pressure to perform felt by purchasing specialists can also quickly increase as a result. A purchasing specialist needs to have solid know-how and interpersonal skills to handle all this flawlessly!

Ask yourself : 

• – Does your organization recognize the work of its purchasing department and what role does this department have in your business model?  
• – Does your organization know how to set up processes and working methods that are coherent, efficient and understood by all employees, in all areas of your organization?
• – Are these processes implemented and followed by your colleagues? 
• – Does your company value effective communication?
• – Are your staff’s time management, follow-up and interpersonal skills up to date? 

Let’s not forget that responsibilities are more often than not shared. Not only between all internal departments, but also with your suppliers, and therefore with their sales representatives. 

Synergies

Finally, we believe that to develop a better relationship between procurement and sales, you need to be able to put yourself in the other person’s shoes, and try to understand the reality they face on a daily basis. Two professional, well-intentioned people who have the development of their respective organizations at heart will create synergies and partnerships that will prove beneficial on all sides.

J2 is there for you! 

If you have any questions about how J2 can help you manage these relationships, please don’t hesitate to contact us. Our team is made up of people with extensive experience in purchasing and procurement, so we understand your needs!