SUPPLY CHAIN
SUPPLIER INNOVATION
SHAPING THE FUTURE OF PROCUREMENT
Mere cost control can no longer be the sole focus for procurement , which now has to leverage supplier innovation to drive competitive advantage
WRITTEN BY : SEAN ASHCROFT
McKinsey research shows that organisations that regularly innovate in partnership with suppliers are more likely to see the biggest earnings growth – sometimes up to 10 % more .
Supply chain leaders , especially in procurement , already know this , because 88 % of respondents to the survey – called Reimagining Procurement for the Next Normal – said they were already running joint-innovation initiatives with suppliers , or were planning to do so .
That report was published back in 2020 , in the midst of a pandemic that was a catalyst for supplier innovation , as organisations sought to make procurement and supply chain more-strategic in nature . In the three years since , leveraging supplier innovation has become pivotal to achieving competitive advantage .
Here , we share insight on the subject of supplier innovation , from three people extremely well-placed to comment . All were speaking as members of panel on a virtual event held by Digital Procurement World .
Elvire Regnier Lussier ( ERL ) is a former CPO with the L ’ OCCITANE Group and is now a CPO consultant and coach .
Mark Perera , ( MP ) is Chairman & Founder of Visibl , a supplier relationship management platform .
Alexandra Tarmo , ( AT ) is the newly named VP of Procurement Center of Excellence with American consumer health company , Kenvue , having previously been Head of Partnerships & Social Procurement with Unilever .
46 August 2023