The relationship between procurement and sales teams is notoriously… tense.
Procurement thinks sales is always trying to push something they don’t want or that won’t live up to the hype, and sales thinks procurement is the ultimate “debbie-downer” who only cares about price.
What if both sides are wrong?
In a recent episode of The Sourcing Hero podcast, Kelly Barner spoke with Mike Lander, CEO of Piscari, a coaching firm that helps sell-side teams improve their negotiating skills and develop a better understanding of corporate buyers.
Before making the leap to the sales side, Mike spent over 20 years in procurement, which gives him a dual perspective on the needs, challenges, perspectives, and even misconceptions of both sides. Mike is now a ‘translator’ between sales and procurement, or, as he calls himself, “the Babelfish of procurement and sales.”
What Sales Really Thinks About Procurement
Mike doesn’t mince words when he describes what most salespeople really think about procurement: “They think [procurement] is only interested in price. They think that they are the devil. They think that they’re there to destroy deals and to disrupt a nine-month sales cycle. They think that they are barriers, obstacles, and that they’re the process police.”
It doesn’t get much worse than that.
But why do these negative perceptions about procurement persist, and why are they so intense? Mike points to a mix of human nature and perspective.
“As a salesperson, you’re used to meeting your economic buyer,” he said, whether that’s IT, marketing, HR, facilities, or other business units. “You tune into your buyer’s world, which is what you should do, but when you come to meet sourcing and procurement folks, they have a different lens of the world.”
This disconnect can lead to opposition when sales perceives that procurement is there solely to put up obstacles or a barrier between sales and their buyer. “Like any human being, you’re wary, suspicious, distrustful, anxious, nervous… and therefore the fight or flight gene kicks in.”
Overcoming Misconceptions
These negative stereotypes aren’t just harmless misconceptions that create tension between the two sides, says Mike. They actively hurt the business and can lead to worse outcomes for every stakeholder.
Instead, Mike suggests, sales and procurement can dismantle some of this tension by engaging with each other much earlier in the process, ideally even up to 18 months before any formal bidding begins. He suggests this because, “by the time the RFP is issued, a lot of work has been done already. At that point, you’re entering the party very late.”
Mike advises sales teams to approach procurement with an open mind at these early stages, which can help lay the groundwork for better collaborations and better outcomes for the business: “Procurement is just another stakeholder like any other stakeholder (for sales). They’ve got a different agenda and different backgrounds. But they’re not the police, so what they say isn’t law, but there are governance laws which they do abide by.”
Reading the Room
How can procurement help to change some of these negative perceptions? As Mike says, it depends on the situation and what procurement is trying to achieve. This can help determine the approach they take with sales.
For example, he says, for commodity purchases where suppliers haven’t yet demonstrated clear value or differentiation, Mike has “no qualms with a sourcing and procurement professional being extremely assertive and very directive, driving savings and compliance.”
However, for more strategic partnerships, procurement should consider a different approach and communication style. In those cases, he says, “focus on the high-impact deals and focus on building trust and taking your time. Trust takes time to build.”
Finding Common Ground
Despite the historic friction between sales and procurement, Mike is optimistic that both sides can achieve alignment, and he points to a few key areas where the two functions usually are gunning for the same outcomes. These, he says, are the most natural places to start when looking for common ground to build upon.
Value Creation
“The biggest mistake that salespeople make is when they don't understand the value they deliver to their clients. Where the common ground is sourcing and procurement people and salespeople want the same thing in terms of driving value into the organization on both sides.”
Risk Management
Both sides need to have aligned views on operational, financial, and information security risks. As Mike says, if procurement's "alarm bells start ringing about operational risk and financial risk and information security risk, and the supplier's blindsided to that and going, 'I don't care about all that. I can see the money,' that's clearly never going to work."
Alignment on Goals and Objectives
Mike recommends a simple exercise for salespeople: "Write down three objectives and look for alignment with procurement. If you've got two out of three misaligned, your chances of doing a deal are very slim."
Both Sides, Put the Gloves Down
Ultimately, solving the sales-procurement problem isn’t about one side changing or deferring just to accommodate the other. Both sides, he says, have to “drop the head games” and approach their relationships with more transparency and goodwill. Joint problem-solving built on mutual trust will always produce better results over adversarial, heated negotiations.
This approach transforms conversations between sales and procurement from zero-sum negotiations that create only binary ‘yes or no’ scenarios to collaborative partnerships where both sides are equally and genuinely invested in understanding and supporting the goals of the other.
For more regarding the relationship between procurement and sales, listen to Mike's full episode here:
