When procurement and industrial groups are aligned, your complete enterprise performs higher. However getting them on the identical web page isn’t all the time simple. At this 12 months’s Catalyze convention, Juan Echeverri (Head of RGM & Industrial Planning for LATAM at Holcim) joined Laurent Dosogne (Co-Founder and Senior Advisor at Nexo Consulting) to unpack what it takes to foster true collaboration between these essential capabilities.

From fostering inside alignment inside firms to negotiating partnerships with demanding exterior clients, on this weblog we’ll present actionable takeaways that resonate throughout industries.  

Procurement vs. Industrial: Totally different Mandates, Shared Outcomes

Procurement and industrial groups usually begin from essentially totally different vantage factors. Procurement’s mandate is to handle provider relationships, scale back prices, and guarantee operational effectivity, whereas industrial groups deal with driving top-line development, constructing buyer relationships, and capturing market share. These differing targets can result in friction—however they don’t should. When each capabilities acknowledge that price effectivity and income development are two sides of the identical coin, they’ll align round shared targets like profitability, buyer worth, and long-term sustainability. True enterprise affect occurs not when one aspect wins, however when each capabilities transfer in lockstep.

The Case for Collaboration Past Value

Historically, procurement and commercial teams have operated in silos—procurement centered on slicing prices, industrial groups pushed by income and relationship development. This fragmented method results in inefficiencies, conflicting priorities, and missed alternatives.

However that’s now altering.

  • 71% of chief procurement officers purpose to enhance margins by price reductions
  • 61% are actually prioritizing stronger collaboration between procurement and industrial groups

A unified development technique throughout inside stakeholders builds belief, accelerates decision-making, and unlocks worth for your complete enterprise.

“The extra you share with the salespeople, the extra they really feel on board along with your technique,” Dosogne suggested. “After all, you won’t share all of your prices and all the things… But when your salespeople are mature sufficient, then I might say you can begin sharing a bit extra. The joint marketing strategy, you’ll be able to’t do that with out the salespeople as a result of they should personal it.”

Key Concerns for Inside Alignment

For industrial and procurement groups to move beyond silos organizations want construction, shared accountability, and a long-term mindset. Key ideas embody:

  • Joint Enterprise Plans (JBPs): Co-developed methods guarantee procurement and gross sales are working towards shared targets. These plans ought to embody aligned incentives, clear metrics, and clear accountability.
  • Belief and Collaboration: In line with Dosogne, “You actually wanna have a system that aligns everyone in the best path.” Belief isn’t constructed in a single day—it requires a constant deal with shared targets and mutual respect between stakeholders.
  • Worth Creation Over Value Chopping:
    Value financial savings matter—however true transformation occurs when groups prioritize long-term worth, supported by transparency, shared KPIs, and open dialogue.

Key Steps for Managing Demanding Clients

In industries with excessive expectations—suppose retail giants or international producers—procurement and industrial groups face the added problem of working with demanding clients. Listed here are a number of methods to method this:

  1. Leverage a Joint Enterprise Plan (JBP): JBPs create a framework for aligning priorities, balancing negotiation energy, and fostering belief amongst stakeholders. Specializing in areas of widespread curiosity corresponding to efficiencies and promotional methods can flip potential conflicts into alternatives for development.
  1. Operational Excellence: When working with demanding clients, companies want precision of their operations. Massive retailers’ emphasis on logistics compliance, open-book costing, and clear pricing requires procurement and industrial groups to function with agility and readability.
  1. Prioritize Relationship-Constructing: The transition from transactional relationships to partnerships is dependent upon belief and collaboration. “It’s not about imposing KPIs from one aspect and hoping all the things works. It needs to be win-win,” Dosogne defined.
  1. Align Incentives and Methods: Clear metrics, clear forecasts, and shared KPIs pave the trail to alignment. It’s greatest to start out small and be taught from errors as you refine your methods.

Methods to Strengthen Distributor Collaboration

The methods beneath define how procurement and industrial leaders can work in tandem to foster extra agile, collaborative, and impactful distributor relationships

  • Constructing Belief: Transparency is important. One approach to construct belief with companions is by highlighting the advantages of collaboration by shared success tales. This not solely demonstrates the worth of belief but additionally encourages ongoing cooperation.
  • Tailoring Incentives: Totally different industries require nuanced approaches. For instance, whereas shopper companies might prioritize promotional effectivity, healthcare requires sturdy forecasting accuracy and transparency in metrics.
  • Designing Collaborative Methods: Efficient partnerships emerge when organizations translate alternatives into actionable plans. For instance, leveraging joint promotions with distributors or aligning data-sharing targets creates mutual advantages.

Placing Processes and Individuals First

Regardless of vital strides in expertise adoption, procurement and industrial groups shouldn’t rely solely on superior programs and new tech to resolve alignment points. Organizational transformation begins with clear communication, alignment of pursuits, and transparency—even earlier than incorporating subtle instruments like provide chain software program or enterprise intelligence platforms.

4 Ideas for Driving Change

  1. Begin small: Implementing change in partnerships and group alignment doesn’t want to start out at full scale. Start with initiatives which are manageable, trackable, and visual to stakeholders.
  1. Study and adapt: Errors needs to be handled as studying alternatives. Profitable alignment requires an iterative method the place groups refine their methods as they progress.
  1. Prioritize individuals over instruments: Particularly when aligning gross sales and procurement groups, the important thing lies not within the instruments employed however in communication and shared understanding. Belief, collaboration, and training take priority over technical options.
  1. Change administration: Change is all the time disruptive, however a deal with transparency and communication can clean transitions. Establishing individuals as relationship homeowners ensures accountability and continuity during times of transformation.

Constructing Collaborative Enterprise Fashions

From inside alignment to exterior partnerships, the important thing to success for procurement and industrial groups lies in fostering belief, agility, and shared targets. The dialogue served as a reminder that true collaboration goes past pricing negotiations—it entails making a joint technique the place all stakeholders profit equally. Whether or not managing relationships with distributors or demanding clients, the pathway to success entails transparency, alignment, and consistency.

As procurement and industrial groups look to the long run, they have to stability operational precision, worth creation, and relationship-building as their north star. By aligning processes, prioritizing individuals, and designing collaborative methods, companies can overcome challenges and unlock new alternatives for development.

Nonetheless curious? Atone for extra Key Highlights from Catalyze 2025.

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