Procurement is Broken...

Procurement is Broken...

When you buy something for your home, let’s say a new sofa, you probably want to go to the shop, knowing what you are looking for, sit on a few, measure them, check that they fit, reflect on why you really need that new sofa, and most importantly, ask some questions to the sales people that know that sofa best. You may take a few notes, compare the sofas you tried out, go home with your thoughts, read some reviews or visit different shops to make sure you get what you really need, and with the most suitable price tag.

Now let’s look at that process in the context of business. Imagine taking your budget of hundreds of thousands of pounds and deciding to spend it on something for your teams to use without ever having a proper chat with the people who make or sell it. No testing it out, no sit-down, no visibility of your new purchase. Just a load of paperwork, long forms, maybe a few questions and answers over email, and a final score that tells you who has won the deal.

This is what most procurement processes still look like today. It is an outdated approach. It does not build trust, it does not create strong relationships, and it often leads to the wrong people doing the wrong work for the wrong reasons.

 

The Process is the Problem

In most organisations, the procurement team is responsible for overseeing the purchase of new services or systems. They write a document with some needs, send it to potential suppliers, score their replies according to their framework, and pick a winner. Sounds fair and simple, right?

But here’s the problem. The people who write the requirements are not always the same as those who will use the services or systems being purchased, and the individuals choosing the supplier often never meet the supplier-side team they will be working with when the product is introduced into the company, or the services are implemented. They may have only seen a written reply. Sometimes, there would have been a short demo or interview, but even then, it’s controlled, rehearsed, and often rushed.

Here’s the worst part of the process, though. The suppliers are instructed not to communicate with the end users, and the end users are told not to communicate with the suppliers. It’s like buying that sofa, based on a photo, without ever sitting on it, seeing it, or knowing if it’s comfortable or not.

How can you build trust like this? How can you be certain that the supplier truly understands your needs? And how can a supplier offer sound advice when they are not allowed to speak to the people with the problem?

 

Why Trust Broke Down

There are reasons for this mess, on both sides. Some suppliers have ruined it for the others. Over the years, many buyers have been promised amazing systems that didn’t get used properly, or at all. The software purchased was never activated, packed with features that looked great on a slide but failed in real-world use. These are known as ‘shelfware’ – because they just sit there gathering dust.

On the other hand, many organisations didn’t take the time to research or explain their needs properly. They may have written vague or rushed lists of features, or worse, taken a copy-and-paste approach, using outdated documents from other projects to compile their list of needs. Then they ask suppliers to respond in detail to a list of needs that are often unclear, incomplete, or not even real.

Some suppliers know this is what is going on, and they see the gaps in their process. But instead of challenging the list of needs, they try to win anyway. They write long answers full of 'yes' and 'maybe'. They have a plan based on the hope that they can sort it all out after the deal is done. It becomes a game. A guessing game.

Obviously, but sadly, nevertheless, in the end, nobody wins.

 

What Happens After the Deal Is Signed

Here’s where things get even worse. The real work begins, but the real problems begin too. The buyer starts to realise they were not clear enough. The supplier starts to realise they promised too much. Once the deal is signed, everyone is stuck. 

The team who now has to use the system may feel left out. They didn’t meet the supplier. They didn’t choose this product. And they don’t feel any loyalty to the project. The supplier tries to deliver something close to what was sold, but struggles to make it work.

Projects stall, frustration grows, and blame is passed around the room. In some cases, the system never goes live. In others, it goes live but fails to deliver the value that was hoped for.

 

So, What Do I Believe Can Be Done?

Let’s not just point fingers; we can work together to fix this.

First, buyers need to slow down at the start. Do not rush to market with a half-baked list of needs. Spend time with the people who will use the system. Understand their goals, daily struggles, and actual requirements. Then write a clear and useful list of desired outcomes, not just features. Invite suppliers to partner and help shape their thinking. Let them ask questions and challenge your ideas. If possible, speak with other customers who have done something similar in order to learn from them, and sound out what you think you know.

Second, build a better process. Allow more time for real conversations between users and suppliers. Create a safe space for suppliers and users to talk openly. Do not treat every interaction like a game of hide and seek. If a supplier cannot be trusted to speak to your teams before a deal is done, why would you trust them after the deal is done?

Third, reward honesty. If a supplier says, “We cannot do that,” or “We would recommend a different approach,” listen carefully. These are signs of maturity. If you punish that honesty by scoring them low, you will drive good suppliers away and reward the ones who bluff. 

Fourth, get the right people in the room. Make sure the people who are scoring responses are also the ones who will live with the decision. Let them be part of the interview and ask the hard questions. Let them feel the energy of the team they may work with. It's not just about the product; it's also about the people.

And fifth, be brave enough to walk away. If something feels off, if a supplier is saying all the right things, not able to demonstrate or back up their promises, and you still have doubts, take a step back. It is better to delay a project than to live with a bad decision.

 

Final Thoughts

Procurement should not be painful. It should be the start of a great partnership, not the end of a paper chase. We need to rebuild trust between buyers, users and suppliers. That means clearer needs, better questions, more human contact, less ambiguity, and, in turn, less fear.

We must stop hiding behind forms and firewalls and start talking, listening, and building things that work. Together.

Because, if you cannot talk to each other before a deal is done, what hope do you have after the ink is dry?

100% agree Mike Lewis and exactly what we Horizon Seven Consulting Ltd fix 💛 #agilesourcing

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Vivienne Hoskins

Empowering your business to deliver great customer experiences through impactful technology enablement. CIO, Non-Executive Director, Coach and Mentor

1w

Great read Mike Lewis. In addition, setting out how your relationship will be managed in future is a good idea. Agreeing up front what success looks like, how issues will be escalated, what will be measured, is a good start to a relationship that delivers results.

Annie Meakin MBCS

Consultant, Transformation, Digital Enabler, QI, Leadership, Business Development and OD, Equantiis

2w

Interesting - I'd like to see suppliers be more accessible to communicate with right at the start rather than filling out an online enquiry form then the 'wait' hoping it's not disappeared into an abyss!

Tanya Sewell

Transformation Leader > Change Management > Programme Management > Business Analysis > Mentoring

2w

All very good points Mike ! I also think having people in the room from the supplier side who are actually going to be involved in the delivery is on my wish list. This can be tricky for suppliers, when you don't necessarily know when an implementation will start and so resource planning is difficult, but it is definitely helpful for buyers. Beyond the product itself, people and relationship building are a really important ingredient.

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