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How can data-driven decision-making improve conflict resolution in Supplier Sourcing?

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Conflict resolution is a vital skill for supplier sourcing professionals, as they often have to deal with complex and dynamic situations involving multiple stakeholders, interests, and expectations. However, relying on intuition, emotions, or personal biases can lead to suboptimal outcomes, misunderstandings, or even damaged relationships. Data-driven decision-making (DDDM) is an approach that uses relevant, reliable, and timely data to inform and support the resolution of conflicts in supplier sourcing. In this article, you will learn how DDDM can help you improve your conflict resolution skills in four ways: by clarifying the problem, by identifying the root causes, by evaluating the alternatives, and by communicating the results.

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BRIGIDO H.

Unlocking value via strategic procurement strategies

1 Clarify the problem

The first step in resolving any conflict is to define and understand the problem clearly and objectively. Data can help you do this by providing factual evidence, quantifying the impact, and highlighting the gaps or discrepancies between the current and desired states. For example, if you are facing a conflict with a supplier over the quality of their products, you can use data such as defect rates, customer feedback, or industry standards to measure and compare the actual and expected performance. This can help you avoid assumptions, generalizations, or personal opinions that can cloud your judgment and escalate the conflict.

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BRIGIDO H.

Unlocking value via strategic procurement strategies
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El soporte de decisiones basadas en datos dan objetividad e imparcialidad dan la idea de como es la realidad. En un Conflito los datos evitan que las emociones ofusquen las mejores soluciones qué de manera ética se tendrán que tomar para el bien de ambas partes.

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Armin Malek

Strategic Procurement | Supply Chain | Driving Efficiency & Value in Global Sourcing |Turning Challenges into Opportunities | Making Deals, Saving Costs, Driving Growth
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Data-driven decision-making in supplier sourcing can enhance conflict resolution by providing objective insights. Analyzing supplier performance metrics, delivery times, and quality data can help identify root causes of conflicts, enabling informed negotiations and resolution strategies. Additionally, historical data can guide the selection of reliable suppliers, minimizing potential conflicts in the future.

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2 Identify the root causes

The next step in resolving a conflict is to find out why the problem exists and what are the underlying factors that contribute to it. Data can help you do this by enabling you to analyze the problem from different perspectives, test hypotheses, and uncover patterns or trends. For example, if you are facing a conflict with a supplier over the delivery of their products, you can use data such as order history, inventory levels, or transportation modes to examine and explain the causes of delays, shortages, or errors. This can help you avoid blaming, accusing, or jumping to conclusions that can worsen the conflict.

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Nicholas Seiersen

The Right Deals with the Right Trading Partners with Vested agreements for complex services
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If you are already sharing the same measurements, it will come naturally to analyze the data together and see what are the underlying causes - more intelligence in two perspectives.

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3 Evaluate the alternatives

The third step in resolving a conflict is to generate and assess possible solutions that can address the problem and satisfy the needs and interests of all parties involved. Data can help you do this by allowing you to compare and contrast the pros and cons, costs and benefits, and risks and rewards of each option. For example, if you are facing a conflict with a supplier over the price of their products, you can use data such as market rates, profit margins, or value propositions to negotiate and justify a fair and reasonable price. This can help you avoid compromising, settling, or imposing your preferences that can harm the relationship.

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4 Communicate the results

The final step in resolving a conflict is to communicate and implement the agreed-upon solution in a clear, transparent, and respectful manner. Data can help you do this by providing evidence, feedback, and validation of the solution's effectiveness, efficiency, and sustainability. For example, if you are facing a conflict with a supplier over the scope of their services, you can use data such as service level agreements, performance indicators, or customer satisfaction to monitor and report the progress, outcomes, and improvement of the services. This can help you avoid ambiguity, confusion, or dissatisfaction that can undermine the solution.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can data-driven decision-making improve conflict resolution in Supplier Sourcing?

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3

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1 Clarify the problem

2 Identify the root causes

3 Evaluate the alternatives

4 Communicate the results

5 Here’s what else to consider

Supplier Sourcing

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How can data-driven decision-making improve conflict resolution in Supplier Sourcing?

1

2

3

4

5

1 Clarify the problem

2 Identify the root causes

3 Evaluate the alternatives

4 Communicate the results

5 Here’s what else to consider

Supplier Sourcing

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