Interview Story - Solved a Problem

As a Strategic Sourcing Leader at BAE Systems, I work on Long Term Supply Agreements in the $5M to $30M range. One of my projects contained sole-source parts in the amount of $11M and competition severable parts in the amount of $6M.

When I initially started this project, I hoped to negotiate one agreement that would encompass all the parts. This would simplify the management of the project.

However, I quickly learned that this would not be possible.

The sole source supplier was a large company and they disagreed with BAE Systems terms and conditions. We couldn’t start our work together until this agreement was settled. After initial conversations failed, I realized that this issue would not be resolved quickly, and I would have to take additional steps to solve the problem.

After discussing this problem with my management team, they still wished to work with this supplier. So, I set up recurring terms and conditions review meetings that included BAE Systems Legal team as well as the sole source supplier’s legal team. Progress coming to an agreement on the terms and conditions was slow, continuing for a period of six months. Ultimately the differences were solved, and we were able to move forward.

The suppliers who submitted their competitive bids accepted BAE Systems terms and conditions. Rather than wait on the sole source provider, I proceeded to evaluate their bids. I also split the original large project into 2 smaller projects. This allowed me to move forward with setting up one $6M long-term supply agreement on parts that were competed, while waiting on the larger sole source provider.

Although I would have preferred to create one Long Term Supply Agreement that included all the parts and allowed me to achieve my annual savings goal, by splitting the project in half, I was able to complete one-third of the project while continuing to negotiate terms and conditions with the sole supplier. I was able to deliver the project with just a three-month delay.