6.3Best practices & pitfalls
The essentials in 30 seconds
- Golden rule: challenge the need, reason in landed TCO, measure real lead time and lock P2P — that makes most of the result.
- Do: second source on critical, shared forecasts, ABC/XYZ segmentation, OTIF steering on both sides.
- Never do: systematic lowest bidder, delivery note signed unchecked, payment with no match, all-push or all-pull by dogma.
Nadia thread — 1 year on: three habits that pay
One year on, Nadia reviews: what counted most was not a tool, but three habits — the need challenged before each consultation, the three-way match before each payment, and the second source qualified when all was well. And her biggest pitfall narrowly avoided: signing a loaded delivery note with no reservations on a rush day.
Pick a single habit to anchor in an existing ritual, then move to the next.
The difference between enduring and steering
A solid chain does not rest on a miracle tool but on a few repeated disciplines. The challenged need, TCO, real lead time and three-way match deliver 80% of the result.
The pitfalls below are so frequent they deserve to be posted on the wall: recognising them already neutralises them.
✓ Do
- Challenge the need before tendering: restate as expected outcome, hunt over-specification and imposed brands — 30% of savings are decided here.
- Think in landed TCO (price + transport + customs + warehousing + non-quality + risk) to compare on identical scope, not in catalogue price.
- Measure and record the real lead time (order → available) and its variability: it sizes every stock and threshold.
- Qualify a second source on each critical item (70/30) before you need it: safety is prepared when all is well.
- Lock P2P: no purchase without a PO, no receipt without a check and written reservations, no payment without a three-way match.
- Share forecasts and stock levels with key suppliers: transparency smooths the bullwhip effect better than last-minute pressure.
- Segment by ABC/XYZ to differentiate management: strong safety and negotiation on critical A items, lean handling on regular C items.
- Steer by OTIF (on time and complete) on both sides: supplier OTIF and customer OTIF are two faces of the same reliability.
✗ Avoid
- Picking the lowest bidder instead of best value: the lowest price without services becomes the dearest at TCO once transport, after-sales and delays are added.
- Confusing catalogue lead time with real lead time: sizing stock on 14 announced days when reality is 21 days guarantees a stockout.
- Signing the delivery note unchecked: a delivery signed with no precise reservations is deemed compliant — recourse almost lost, especially against the carrier.
- Letting MOQs dictate quantities: accepting 6 months of stock by default ties up cash for an illusory unit saving.
- Staying single-sourced for comfort: with no qualified alternative, every renegotiation is lost in advance and every hazard turns critical.
- Consulting a single supplier out of habit: with no 3 to 5 comparable offers on identical scope, you have no market information.
- Paying on invoice alone with no match: price errors, duplicate invoices and forgotten discounts go unnoticed for months.
- Running 100% push or 100% pull flow by dogma: the mix (buffer stock on regulars, pull on uncertain demand) beats extremes almost every time.
Ready-to-say script — refuse the lowest bidder (1 min)
"The cheapest on price often becomes the most expensive on arrival once transport, storage and delays are added. I compare at landed TCO on identical scope and choose best value."
Copy-paste template — monthly self-check (8 questions)
THIS MONTH (yes / to improve):
1. Need: did I challenge before consulting?
2. TCO: did I compare at identical landed scope?
3. Lead time: real measured or catalogue lead time?
4. Second source: qualified on critical?
5. P2P: PO, delivery-note check, match before payment?
6. MOQ: challenged or suffered?
7. Forecasts: shared with key suppliers?
8. KPI: supplier and customer OTIF tracked?
MY PRIORITY NEXT MONTH (only one): ...Small business / tight budget
One habit per quarter is enough: three-way match first, the rest after.
Algeria SME
Fit rituals to peaks and trips (port, bank, wilaya): a habit that survives rush beats ten resolutions.
Import / distant
The #1 discipline for import: written confirmation with INCOTERMS and enforceable lead time, no exception.
Growing team
Post the 8 reflexes on the wall and name a keeper per ritual (order, receipt, KPI review).
48h challenge — apply tomorrow
Fill the monthly self-check above and pick a single priority to anchor in an existing ritual.
- I know the 8 reflexes to apply and the 8 pitfalls to avoid.
- I filled the self-check and picked one priority.
- I did the 48h challenge or scheduled its date.
Nadia gets an offer 12% cheaper with no transport or warranty: which reflex avoids the lowest-bidder trap?
Quick test: if you redo the same manual fix more than twice (chase, credit, dispute), automate the cause (threshold, contract, grid) instead of enduring the effect.