A great information resource, rarely tapped is the vendor. We certainly obtain information about pricing and terms. But do we ask them for input on design and specifications? Increasingly Purchasing teams are conducting innovation sessions with the suppliers to learn how the supplier thinks our needs can be met. Clearly, good planning and facilitation is needed to avoid hearing the suppliers qualifications one more time. Structure the agenda to focus on new ideas.

The auto industry discovered the value of the suppliers input when they were forced to reduce their design staffs during the 1980s. Instead of providing detailed specs for the suppliers to bid on they shifted to providing the suppliers with requirements to be met. For example, supplier design a bumper that can with stand an x mph impact with no damage etc. The vendor community has responded very well with innumerable cost savings.

One note of caution. The innovation sessions must be completely independent of the pricing discussion and must take place early in the requirements planning process.