CONTRACT MANAGEMENT
“ What is more important is how suppliers act upon it and what the root cause of the issue is.”
A multi-million dollar dispute can put strain on a supplier relationship to breaking point, but procurement leaders who navigate these moments successfully are those who understand that contracts exist between organisations and trust is rebuilt between individuals.
“ It is important to distinguish the business from the person,” says Gaël.“ The way you show up for your customers is incredibly important.”
Leading through crisis and beyond When it comes to dispute resolution, the shift from reactive crisis management to proactive supply chain strategy is what, ultimately, sets a procurement function apart from those that are seen as a cost centre, from those that earns a seat at the strategic table.
“ When you are acting like a contract police, you get procurement that is transactional. When you think ahead of time, your team is seen as a strategic function. First and foremost you have to be proactive,” says Gaël.
In a time of crisis, people look to leaders more closely than at any other time. It is important to be the one with the cool head, leading the team through the crisis with clarity on actions.
“ First, resolve the issue and ensure supply continuity, then figure out the balance of consequences for the supplier and capture learnings. In the end, it is just business,” concludes Gaël.
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