SUPPLY CHAIN
CUMULATIVE TRS PERFORMANCE , INDEXED TO 100 ( FY2007 )
140 |
ECONOMIC DOWNTURN |
RECOVERY GROWTH |
|
PROCUREMENT LEADERS |
120 |
|
|
|
100 |
|
|
PROCUREMENT FOLLOWERS |
80 |
|
|
|
60 |
|
|
|
40 2007
2013
Following the global financial crisis ( GFC ), Procurement Leaders significantly outperformed Followers 42 % higher cumulative TRS in the 5 years post crisis
~ 3 years faster recovery to pre GFC TRS
How important is supplier collaboration ? MP : McKinsey ’ s statistics show that 70 % of innovation comes externally , and also that those companies with mature , deep supply collaboration can increase the speed of commercialising innovation by 40 %. So if you add those two numbers together – leaning in on the suppliers for innovation and the ability to commercialise it – it ’ s kind of a magic combination for organisations .
AT : At Unilever , during Covid , we were totally taken by the need for innovation . Our business totally changed .
We were not really doing hand sanitiser before but in a short space of time we had sanitiser products available in every country , and this happened only because we had extremely high levels of collaboration . We had to learn how to do this in weeks – not months , as would be usual . We had to rethink processes internally and how we managed innovation , including how we onboarded many new suppliers .
How does digitalisation help supplier innovation ? MP : Innovation projects allow communications to flow in the right way across cross-functional teams . So digital helps break down the internal silos , but you ’ re also trying to optimise the relationship management side , and not just with big suppliers , but startups as well .
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