Beyond the Bottom Line: Collaboration, Cost and Digital Innovation in Procurement

For procurement professionals, valuable lessons often come from real-world experiences, especially the missteps made early in one's career.

Tim Harvey, Procurement Manager at CompSource Mutual Insurance Company, recently joined Daniel Barnes on Gatekeeper's "Procurement Reimagined" podcast, candidly sharing his journey and the vital insights he's gained along the way.

From Conflict to Collaboration: A Transformational Shift in Procurement

Tim openly described how, at the beginning of his career, he approached supplier relationships with a competitive, confrontational mindset: “I approached my suppliers, bidders, everything, with an almost combative, us-against-them mentality.”

He quickly realised this attitude was not sustainable, significantly reducing his pool of potential suppliers and ultimately harming procurement outcomes. Tim remarked, “All I did was reduce my supplier pool. Eventually, we started having the same two or three suppliers apply to every bid.”

A turning point came when he attended a reverse trade show. This experience made Tim appreciate the expertise and insights suppliers could offer, shifting his approach towards collaboration and mutual respect.

By opening a dialogue and genuinely engaging suppliers, Tim improved both relationships and procurement outcomes, proving that collaboration drives far greater value than confrontation.

The Hidden Risks of Choosing Lowest Price

Tim also addressed the frequent procurement error of prioritising cost above everything else.

He shared a specific early-career experience where selecting the lowest bidder based purely on cost resulted in immediate and ongoing issues - change orders, mounting costs, and eventual contract cancellation.

“Things went south almost immediately,” Tim explained, underscoring the danger of overlooking quality, capability, and reliability in favour of the cheapest option.

Tim’s lesson from this experience is clear: procurement professionals must evaluate suppliers using a wider lens. Considering capacity, reliability, infrastructure, and overall value leads to smarter, more sustainable procurement decisions, ensuring long-term effectiveness and efficiency.

Digital Transformation: Removing Procurement Complexity

A strong advocate for digital transformation, Tim highlighted a critical frustration among procurement teams: expecting highly specialised colleagues - like software engineers - to navigate cumbersome, manual procurement processes.

He criticised the practice of teaching non-procurement staff complex procurement tasks as inefficient and counterproductive.

In Tim’s view, the solution lies in embracing digital workflows and automation. Implementing digital solutions streamlines procurement processes, eliminates unnecessary complexity, and simplifies compliance.

Crucially, this allows skilled professionals to focus on their core responsibilities, increasing overall productivity and satisfaction.

The Skills Needed for Procurement Success

Reflecting on essential procurement skills, Tim emphasised curiosity and thorough documentation.

"Anybody in procurement should have a childlike curiosity," he explained, highlighting the value of continually asking questions and seeking deeper understanding.

He also shared critical advice from a mentor: “Document, document, document. In procurement, if it's not documented, it didn't happen.” Tim reinforced the importance of detailed documentation in managing risks, meeting compliance requirements, and ensuring smooth audits.

Wrap Up

Tim Harvey’s experiences offer valuable insights for procurement professionals aiming to enhance their strategic approach, relationship-building, and operational excellence.

His journey demonstrates the importance of collaboration, value-driven decision-making, and digital transformation as keys to procurement success.

Ultimately, his reflections are a timely reminder that procurement is continually evolving - and that agility, curiosity, and a commitment to digital innovation are essential for successfully navigating future challenges.

Listen to more procurement insights over on our Procurement Reimagined podcast.