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Management article
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Reference no. SMR65120
Published by: MIT Sloan School of Management
Published in: "MIT Sloan Management Review", 2023
Length: 12 pages
Topics: Operations

Abstract

Companies that have successfully automated their procurement negotiations are gaining a wide range of benefits, including cost savings, increased supply chain resilience, and access to an expanded pool of qualified suppliers. However, implementing a new procurement model and a different approach to relationships isn't easy. Six key practices are needed to address legitimate concerns and overcome resistance from business unit leaders, buyers, and suppliers.

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Abstract

Companies that have successfully automated their procurement negotiations are gaining a wide range of benefits, including cost savings, increased supply chain resilience, and access to an expanded pool of qualified suppliers. However, implementing a new procurement model and a different approach to relationships isn't easy. Six key practices are needed to address legitimate concerns and overcome resistance from business unit leaders, buyers, and suppliers.

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