I was privileged this week to spend a few days with several hundred practitioners in the art of commercial contracting. The IACCM Annual Americas Forum held in Chicago drew participation from hundreds of companies around the world that are committed to innovation and improvement in contracting process, practices, and skills.
I’ve attended several of the IACCM events over the past 15 years – a testament to the commitment and persistence of the IACCM leadership, notably CEO Tim Cummins. This year’s conference demonstrated the power of collaboration among the professionals who are committed to improving the quality of Buyer-Supplier relationships.IACCM (International Association for Contract & Commercial Management) is a unique not-for-profit organization that is committed to improving the quality of commercial contracting. In this day and age of changing forms of contracting, their mission is more important than ever.
I co-presented a session today focused on the techniques used buy procurement organizations and sales professionals to create new sources of value through collaboration. Jim Bergman of IACCM joined me in this presentation. We shared our experiences around techniques to move from transactional buying to shared risk, shared investment, and collaborative innovation.While collaborative buyer-supplier relationships are clearly not an everyday occurrence, we observed that certain conditions are essential if the parties share a desire to move beyond a commodity transaction. These include:
· Foundation of delivery on core commitments and trust· Transparency and candor
· Shared risk, shared investment
· Strong contractual documentation