In this insightful episode, we explore the evolving landscape of procurement within the food industry with our guest, Michelle Bailey.
We kick off the episode discussing the pivotal role of streamlined procurement processes and the benefits of enabling employees to access product information group-wide, driving efficiency and reducing complexity. Lucy suggests an ambitious idea: an industry-wide global database of all ingredients and whilst the idea poses anti-competitive concerns, the potential benefits are intriguing.
Michelle highlights the importance of creating category strategies within procurement, which enhance transparency about purchasing, supply chains, and supplier expertise. These strategies empower teams, especially those in customer-facing roles, to engage confidently with retailers. She reflects on the transformation from decentralised to centralised procurement approaches, which have significantly improved efficiency and supplier relationships over the years.
Supplier feedback is another key theme, with Michelle stressing its importance in building better supplier-customer relationships. She also addresses the often-overshadowed role of procurement teams in organisations and the challenges they face, such as lack of training and organisational representation. Michelle’s consultancy work focuses on busting the myth that procurement is solely about lower prices; it's about strategic negotiations, especially in volatile markets.
The episode then delves into the confusion around job titles and how similar roles can vary significantly between companies. Amy recalls a course Michelle wrote that demystified procurement for non-specialists and enabled better supplier communication, reinforcing Michelle's mission to empower businesses by developing their procurement skills and confidence.
Effective communication, particularly phone communication, is emphasised as a critical aspect of managing supplier relationships. Despite generational discomfort around phone calls, Michelle, Lucy, and Amy agree on its advantages over emails in enhancing supplier relationships and business outcomes.
The conversation shifts to the complexities of procurement, such as sourcing high-demand raw materials, and the growing importance of sustainability, due diligence, and clear supplier compliance. Michelle and the hosts draw parallels between procurement and new product development (NPD), noting the significant internal communication challenges both faces.
Michelle provides valuable advice on building internal relationships, encouraging less reliance on emails, and emphasising enjoying the journey. She closes with reflections on her career and remaining accessible to listeners for further questions or advice via LinkedIn. The hosts wrap up by inviting listeners to join their Facebook community and connect on LinkedIn for professional services.
Timestamps:
- [00:00] Introduction and Welcome
- [02:45] Guest Introduction: Michelle Bailey's Background
- [05:30] Importance of Streamlined Procurement Processes
- [10:00] Industry-Wide Ingredient Database Proposal
- [12:15] Role of Category Strategies
- [16:40] Evolution of Centralized Procurement
- [20:50] Significance of Supplier Feedback
- [25:00] Challenges in Procurement Roles
- [30:20] Procurement Myths: Beyond Lower Prices
- [35:00] Job Title Confusions and Impact
- [40:10] Effective Communication: Phone vs. Email
- [45:30] Complexities in Procurement and Sustainability
- [50:00] Similarities Between Procurement and NPD
- [55:20] Internal Relationship Building and Career Reflections
- [59:55] Closing Thoughts and Contact Information
Links and Resources:
Website Link: https://ohforfoodssake.co.uk/
FB Link: https://www.facebook.com/groups/ohforfoodsake
LinkedIn: https://www.linkedin.com/company/oh-for-food-s-sake/
You can follow us here on Instagram: https://www.instagram.com/oh_forfoodssake/
For industry consulting from Lucy, connect with her on Instagram or LinkedIn.
Find her on Instagram or LinkedIn for further support with industry coaching and facilitation from Amy.
See you next time!
