Corporate United hosted an Implementation and Compliance Workshop on May 4, 2010 at its SYNERGY Conference in Chicago, IL. A member panel conducted an active discussion with attendees on how to improve certain elements and combat common issues companies face during the implementation process and while obtaining preferred supplier compliance.

This well-attended workshop was very insightful for members and provided many takeaways for procurement professionals on how to improve upon and better utilize their supplier relations. All the ideas presented during the workshop were in line with the emerging trend of focusing on strategic sourcing and moving beyond previous procurement assumptions.

A successful implementation program must begin with a plan. As implementation plans will differ by company and by different categories within the same company, it is essential that employees from both the purchasing company and the supplier work together to develop a cohesive plan. Some key aspects for the plan include:

• A clear perspective of the culture, architecture and sites that will be adopting the new agreement

• Knowledge of your customers – both the end user and the key decision-makers

• Clear timelines and communication protocols

• Awareness, visibility and education

• Measurable compliance goals

Procurement takes on a very important sales role during the implementation and compliance phase; it must relay both savings and non-cost aspects to influence their customers to embrace the new supplier offering. In this sales role, program awareness and visibility greatly enhance the opportunity for adoption. Equally important is the role of change management. Procurement’s ability to influence and support change is critical.

With the numerous roles that procurement must assume, suppliers can best assist by understanding the limitations of some procurement teams. Not all companies have the internal resources to assist with compliance initiatives. In these situations, request that the supplier adapt communication protocols to allow your procurement team to focus on priority objectives. Success in these environments hinges on visibility, communication and setting realistic expectations up front so both buyer and supplier resources can be utilized effectively.

The use of non-contract suppliers by various employees in organizations can have a significant impact on compliance goals. Corporate United focuses on reaching compliance goals by providing the necessary education and awareness to different functions within member organizations. This education can take various forms, from email or hard copy fliers for end users to webinars for key decision makers. Regardless of the medium, the objective is to deliver the appropriate value proposition message for the recipient. Several non-traditional measures exist to identify and discourage non-preferred supplier spend including:

Buyers desire a long-term relationship with suppliers; this relationship is best established by focusing on the total cost savings which can be realized through various functions within the member organization.

Suppliers can create and strengthen this relationship and gain more involvement within the company by reaching beyond the procurement contact to other key individuals in the organization. Corporate United works to mentor this relationship by negotiating contracts with total cost savings and by providing the necessary contacts for both parties.

Lastly, the two main measures of implementation success are awareness of contracts and conformance. These measures imply that education and communication are key and the following actions should be taken to support those measures:

• Get creative and go beyond the standard channels for communication of new contracts by using email, videos, podcasts, web, etc. to broadcast awareness

• Know your customer and maintain an updated list of key individuals who need to be made aware of new contracts

• Assist suppliers in contacting key individuals, allowing them to better explain the benefits of the new contract

• Educate employees about offerings and all the value-added components that go beyond price

• Utilize Corporate United for assistance with communication materials explaining the benefits of the supplier throughout your organization

Just as Corporate United looks to facilitate a smooth implementation phase between the supplier and member with a push for compliance from step one, the implementation process will continue to evolve and improve with every new supplier and agreement. You should begin to see more detailed plans, a focus on total cost savings and engagement with other functions within your company. You will also discover more ways to drive compliance – from both your own experience and from the best practices of other Corporate United member companies. The key is to discover the processes that are right for your company and that will ultimately contribute to the strategic growth of your procurement department.