The Pitfalls That Derail Sourcing Events
❌ Critical Mistakes to Avoid
- DO NOT SKIP the baseline. Without a solid baseline, you cannot quantify savings credibly or justify your recommendations.
- DO NOT TREAT suppliers as adversaries. The best outcomes come from collaborative, professional relationships - even in competitive processes.
- DO NOT OVER-ENGINEER the RFx for simple categories. An RFI + auction for pens is disproportionate. Match the process to the complexity and value.
- DO NOT LET stakeholders bypass the process. If a stakeholder can go directly to their preferred supplier, your sourcing event is just window dressing.
- DO NOT NEGOTIATE only on price. Price without consideration for quality, service, and risk is a race to the bottom.
- DO NOT FORGET the "day after." Contract signature is not the finish line - it is the starting line for value creation.
- DO NOT SHARE one supplier's pricing with another. This is unethical, potentially illegal (competition law), and permanently destroys trust.
- DO NOT PROMISE savings you cannot verify. Only claim savings that are baseline-referenced, validated, and measurable.
⚠️ Legal Warning - Competition Law
Sharing one supplier's pricing with another to extract concessions is a violation of business ethics and may constitute a restrictive practice under competition law (e.g., EU Treaty Art. 101 TFEU and equivalent national legislation). It also constitutes a breach of the duty of good faith in pre-contractual negotiations, a principle recognized in most jurisdictions. Never do this.