It’s not going to work without you.

Shutterstock.com | Kateryna Onyshchuk

One aspect where the human factor is apparent is the introduction of supplier portals. The need for these was driven in part by the German Act on Corporate Due Diligence in Supply Chains. By following this UN-led NAP (National Action Plan for Business and Human Rights) initiative, supplier portals are primarily used to delegate administrative tasks from purchasing to suppliers. This means that the on-boarding of suppliers is carried out independently in the supplier portal. In addition, supplier evaluations and audits are ideally handled through the portal. As always, it now comes down to the practical side. And this is where the idea often prevails that the suppliers should do the work. The responsibility is willingly passed on at the same time. However, this approach bears risks as we know from past experience.

Focus on the user — not on the technology

An excellent example of taking the human factor into account when introducing a supplier portal is DB (Deutsche Bahn), Germany's national railway company. This year, their purchasing introduced a new supplier portal that not only provides information, but is also specifically geared to the needs of suppliers. The user comes to the front in this case. In addition to the practical benefits of the portal based on necessary and easy-to-understand information, the focus is on the individual and his or her needs.

Personally, I believe it is extremely important to focus on the user, especially in digitization projects. As a purchasing consultant, I recommend that my clients seek outside assistance. In the specific example of DB, a marketing agency was brought in to develop the concept along the lines of procurement branding. This shows that external support can make a decisive contribution to the success of purchasing departments.

A key aspect of the project was to create clear and intuitive content structures to eliminate any barriers for potential and existing suppliers. The portal's content was completely reinvented in the process from the user's point of view — not from the company's point of view. One particularly helpful method was the creation of fictitious individuals, designed to appeal to specific target audiences. In DB’s case, questions were asked, such as: "What does the supplier need?" or "What does the typical purchaser look like and how old is he or she?" Anyone who would like to visit the supplier portal can do so at https://lieferanten.deutschebahn.com/supplier/Become-a-supplier/First-Steps.

I was impressed by DB’s approach of putting people first and involving external support during the introductory phase of the supplier portal. It is a partnership based on collaboration in which the human factor plays a central role — crucial for a successful digital future.

Why the focus is on the human factor

We as individuals are socially oriented beings. There are numerous studies and research experiments that show that without contact to others, we will wither away. Thus, building relationships is essential for the success of a company, especially for purchasing. A strong network and good supplier relations also enable improved cooperation and a better basis for negotiation. There are numerous other advantages, some of which I would like to highlight below:

Understand needs: By putting people at the core, it is a lot easier to understand and to respond better to human needs. This leads to more effective communication and cooperation with suppliers.

Boost motivation and commitment: When people encounter each other, they feel appreciated and respected, resulting in a higher level of motivation and commitment. This has a positive impact on performance in purchasing, an important aspect for greater success.

Foster innovation: By placing the focus on people, purchasing encourages them to bring new ideas and solutions to the table. Creative and innovative approaches can lead to competitive advantages and improve the purchasing process.

Increase customer satisfaction: Purchasing has a direct impact on customer satisfaction. By focusing on people first and understanding their needs, you can improve the quality of the products and services purchased and thus increase customer satisfaction.

Conclusion: the central role in purchasing

It is obvious that people play a central role in purchasing. Nevertheless, in the future, purchasers will need certain competencies in order to perform at their best. This is why companies are also being asked not to take haphazard, aimless measures, but to build up a modern, innovative purchasing department in a structured manner. In this context, I see the focus on the individuals who contribute to making the transformation in purchasing a success. After all, a department only performs as well as its team members. This is why the skills of the new purchasers are in the spotlight here. I firmly believe that from the moment buyers are perceived and appreciated as those who actually shape the business, then their work will have a positive impact on the overall success of the company.

If you would also like to learn more about how to make your purchasing department fit for the future, I invite you to read my book Purchasing in Transition(Der Einkauf im Wandel). You are also welcome to send me your questions via LinkedIn or discuss them in a meeting free of charge.

For more on this and other issues for sustainable purchasing strategies, listen to my podcast.