3 Steps for Engaging Stakeholders
Purchasing teams almost always hit sizeable speed bumps when implementing cost savings. We’ve learned over 20 years that investing a little time at the front end of a sourcing initiative to engage stakeholders pays huge dividends when it comes time to implement.
Here are 3 simple steps for engaging stakeholders.
1. Identify the stakeholders that you need to engage
Determine which functions rely on the category’s suppliers for something.
For example, these functions all interact with – or rely on – MRO suppliers.
- Plant buyers
- Material managers
- EHS managers
- Plant controllers
- Production supervisors
- Maintenance supervisors.
Identify one person in each plant for each function. Connecting with these key people builds support and helps spot what really matters before the sourcing event.
By getting their input early, you understand their needs and avoid surprises down the road. Just as importantly, you’re involving them in the process, giving them a stake in the success of cost savings implementation.
2. Create an interview guide
Include a few questions for each function specific to how they interact with suppliers. In addition, every stakeholder should be asked:
- What do you rely on suppliers of [category] for?
- Any pain points with current suppliers of [category]?
- Any improvements you’d like to see for [category] suppliers?
An interview guide ensures you capture the full picture. By tailoring questions to each function, you’ll uncover unique needs and frustrations. Also, keep the guide simple and consistent across interviews to spot common issues.
The goal? Understand what each stakeholder values, so you can set up the next supplier relationship for success.
3. Interview the stakeholders
Schedule 15-minute phone interviews with each stakeholder.
Do not rely on email or a survey – follow-up questions to initial answers are a critical part of understanding their needs. Short calls help you dive deeper and clarify their points in real time.
Start by asking what they need from suppliers and any challenges they’re facing. Make it conversational, not just a checklist. Listen for themes or repeated issues across functions.
These interviews will reveal pain points and priorities that may not surface in written responses. This approach makes it easier to align the sourcing event with what really matters to those who’ll be impacted.
Prioritize stakeholder needs and include them in the Statement of Work (SOW) when quoting
The SOW should differentiate between:
- Services to be performed – Services expected for all part numbers and for all plants (costs included in quoted pricing) and
- Additional services – Services needed on some parts or for some plants (priced separately).
For example, Secondary operations, expedited shipments, on-site rework, and technical expertise.
Conclusion
Engaging stakeholders early and thoroughly in the sourcing process helps lay a strong foundation for success.
By taking time to understand each function’s needs, challenges, and goals, you create alignment and secure their buy-in, which minimizes implementation hurdles later. This upfront effort is crucial for avoiding delays in delivering cost savings.
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