CASE STUDY / NARTA
As a procurement person you know that you’ll hit diminishing returns. You might get smaller fraction of saving next time and so on. The results so far have been extremely successful, but it will not be sustainable to keep running a tactical process.
Narta is also introducing six-monthly “sourcing meetings”, two-day events during which senior representatives from the preferred indirect suppliers come to explain the latest advances in technology, goods and services and sustainability programs”It gives smaller members access to strategic meetings with major suppliers that they would not be able to have in their own right. Yet another example of how using our scale and scope puts us in the top tier of customers with our supply partners” “We want members to be engaged but we don’t know whether that’s happening. The event is to help members understand what’s new in suppliers businesses, whether that’s new processes, expanded service offering, or changes to their source Manufacturers to ensure ongoing sustainability and meet regulatory requirements. This is a way for us to know that engagement is happening, because we are driving it and are maintaining it,” Barclay says. Narta faces a particular challenge in engaging stakeholders with SRM, because some of the member organisations also have procurement teams who may have their own SRM programs. We must therefore ensure we are aligned in our plans and travelling in the same direction and not causing conflict between processes. Supporting Procurement Teams “They know what they’re talking about. We need to make sure that we have the right plan in place to be able to manage those relationships. We have a two-pronged approach to managing a successful procurement programme. You have engagement at all levels and on all sides. You have your suppliers who are engaged, because they’re getting the volume that you’ve committed, and members are engaged because you’re delivering on your commitments through best in class procurement and providing value through the collective sourcing model,” Barclay says. The challenge for Narta’s SRM is to ensure its processes are fit for its member organisations, whether they are big or small. As such it allows members to use as much or as little of its
procurement services as they want, and not replace their internal expertise.
Listening to members and stakeholders “If I’m speaking to a member category manager for marketing, and I’m helping to buy print services, they probably have a passion for that category. The challenge is to add value to them without doing any harm. We are here to do as much or as little as anyone needs us to do. With some members, they don’t have a procurement team, and we do all sourcing for them. Others will say, ‘we’re going to use you for tactical activities only’. Others will say, ‘Okay, I’ve got three people, I could have five people, but I’m going to use you instead of hiring another two’.” “What we need to make sure of is that we’re listening to the members, and we understand what they need and that it’s bespoke. It’s a trust thing for me. If you don’t have the trust of that procurement team, that you are there to help and not to take over, the whole process will fail,” Barclay says. Narta’s SRM journey is in its early stages, but it has the backing from the top of the organisation. CEO Michael Jackson says: “Collaboration is at the centre of what we do. Not only do our shareholders and members benefit from strength in numbers to gain pricing effiencies for our customers, but also leverage our scale in the market to deliver valued services. Together we continue to form new relationships with various supplier partners ensuring market leadership and continued longevity. We know in the future, SRM will increase its role in our strategy and boost value for all our stakeholders.” Narta is continuing on its SRM journey. With complex demands coming from the variety of member organisations, its procurement team hope to show how effective stakeholder engagement is one of the cornerstones of success. Through a framework aligned to the specific needs of multiple businesses, the program will grow and change as the membership base does. However, the key pillars will stay the same: Value beyond savings, partnership growth, risk & compliance management and continuous innovation through operational leverage.
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STATE OF FLUX
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