Monday, November 25, 2013

Best Value Procurement

Best Value Procurement

New trends in procurement, always great to encounter as an entrepreneur, because it brings opportunity to an existing arena! Dean Kashiwagi started on the BV PIPS (Performance Information Procurement System) and this concepts were picked up, and even advanced in Kashiwagi's own words, by Dutch experts Sicco Santema and Jeroen van de Rijt. "Prestatieinkoop", as it was baptized in Dutch, brings back the value of expert suppliers in the landscape of 'tendered to death' procurement. As an expert supplier of course I valuate this insights, but as an IT-supplier and Procurement entrepreneur I also see the complexities involved...

How can we automate a tender which is based on BVP?! There is only an outline of an endstate requirement available; suppliers are selected based on their added value instead of clean-cut requirements; added value is based on experience and approach instead of tick-in-a-box counting of tender-points!
The IT guru's out there will certainly know what I mean: automating something which is not pre-defined and based on a comparison that is fluid because the value comes from the input delivered by suppliers: nightmare!

Still, the procurement world embraces the new approach, so do we. Because real success is based on added value (as we have just learned), and what more added value to deliver as an entrepreneur when there is absolute challenge involved. The time has come that Big Data will meet Procurement, I guess, new and smooth data processing, near-to-artificial-intelligence meets the dusty fields of supplier and tender comparisons. Now the only thing that I have to do: invent integration of this concepts with SAP SRM and SAP Sourcing, guarantee performance and make it user friendly. This should be interesting....

Doede van Haperen
www.lakran.com
www.postulit.com

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