Commercial capability is a tool that needs constant sharpening as it is an important consideration for procurement professionals , no matter which sector they work in . The public sector can make equal use of commercial skills by sharing best practice with stakeholders such as suppliers or partners and indeed , many governments are developing commercial capability so the value is recognised across all sectors . To understand commerciality , the first step is to establish what ‘ good ’ looks like , which serves as a direction of travel , as well as highlighting capability gaps . Take a look at the start of the procurement process and ensure that any specs are accepted on the basis

of end-to-end cost-to-serve , with the customer fully in mind . Sometimes under or over-specification can drive waste further down the supply chain , or are incomplete which means the contract ends up not being fit for purpose . Having commercial acumen also means understanding what needs to be measured . Procurement can still be process-driven and transactional and all about cost rather than strategicbased , which offers true value across the supply chain . ‘ Being commercial ’ is often perceived as cost-cutting and driven to take excess out of supply chains , but it also means measuring non-financial elements as well as creative , innovative thinking .

58 March 2018