SUPPLY CHAIN
and acting upon – live performance data , procurement leaders and operational teams can now minimise the costs of timeto-action and time-on-task . This hugely accelerates their rates of return .
PB : The CPO of a major coatings manufacturer told me about a project they undertook with a core supplier to reduce a 30-step manufacturing process to 15 steps , with a significant positive impact for both buyer and supplier . If your SRM programme isn ' t fostering that level of trust then you ' re missing out on such opportunities .
While cost savings shouldn ' t be the focus of any SRM programme , solid relationship management opens more channels for finding cost savings . Also , having a better understanding of supplier relationships gives insight into how spend allocations can impact potential savings .
How important are customer and supplier-of-choice relationships ? SM : In a world where turbulence is constant and disruption is on the rise , it ’ s never been more important to foster collaborative relationships as a way of mitigating global supply challenges and rising inflation .
Change laggards will find themselves struggling to keep pace with those organisations that embrace change and explore ways to collaborate as partners .
Suppliers and buyers are seeking to drive value through reciprocal relationships , joint values , innovation , shared responsibilities and thought leadership .
PB : I think companies have long seen the value of having suppliers of choice . Vendorful customers always set up some kind of ‘ preferred supplier ’ field in our system . What ' s new is the emphasis on
‘ customer of choice ’. More and more companies are asking if they are a preferred customer – sometimes by asking suppliers outright on questionnaires .
It ’ s very important to have this kind of relationship with suppliers .
What benefits do such relationships bring ? SM : Parties can create an infinite array of opportunities to generate value . These include improved visibility that produces actionable insight . Also , collaboration fosters diverse creativity and shared R & D , as well as reducing risk , promoting trust , and driving better communication .
42 October 2022