PROCUREMENT
“If your suppliers fail , you fail , it ’ s as simple as that ” DUNCAN BROCK GROUP DIRECTOR , CIPS
mutually beneficial to both parties , where the focus goes beyond traditional purchasing arrangements and extends to driving innovation and collaboration ,” says Nath . “ A good supplier relationship is a partnership that needs to be nurtured and invested in – for long-term benefits . It is managed through a two-way balanced scorecard where you give feedback to your partners but are also open to receiving feedback on what you can do better .”
For Brock , “ it ’ s about open , transparent and honest communications and a willingness to collaborate in good times and bad . Having regular catch-ups ensures suppliers can share any difficulties they are having which could impact on you further down the line ”.
Sometimes , this is as simple as renegotiating payment terms . During the pandemic , thousands of SMEs went under as cash flow became tight and supply chains halted . “ Some businesses saw the writing on the wall for their essential suppliers last year and paid them earlier to prevent any issues during these disruptive times ,” Brock says .
And it is those organisations that supported their suppliers who will come out stronger as the global economy reopens in earnest . With no end to disruption in sight , suppliers have more bargaining power than ever before . “ During disruptive times , a supplier can hold just as much power if the one essential component they are supplying but not delivering holds up your production line ,” Brock explains . “ The times of ‘ beating down the supplier ’ is gone , not just because it ’ s an unethical approach anyway , but because the next disruption is just around the corner .”
Digitalisation and Supply Chain Management Digitalisation of procurement has been revolutionary for SRM . Platform technologies make the value chain more transparent , while robotic process automation ( RPA ) and intelligent automation further free up procurement professionals to engage with suppliers and drive further value .
Jaggaer is a leading provider of procurement technology , offering a suite of solutions that bridge the gap between organisations and their supplier ecosystem . Jim Bureau , Jaggaer ’ s CEO , says that leveraging this type of technology “ drives further efficiencies ”. “ Procurement can build stronger relationships with suppliers instead of relying on spreadsheets , phone calls and other outdated communications methods that are error-prone and inhibit agility and innovation ,” he says .