“ THERE ARE ADVANTAGES IN LEVERAGING SUPPLIER CAPABILITIES DURING THE DESIGN PHASE OF THE INNOVATION CYCLE ”
SUPPLY CHAIN
“ THERE ARE ADVANTAGES IN LEVERAGING SUPPLIER CAPABILITIES DURING THE DESIGN PHASE OF THE INNOVATION CYCLE ”
BRANDON RAEL STRATEGY & OPERATIONS LEADER , CAPGEMINI INVENT
What do businesses need in place to systematically leverage supplier innovation to further their own ends ? BR : With the great digital acceleration and ongoing global supply chain disruptions , businesses are being challenged to drive profitable and sustainable growth while mitigating operating costs . This requires procurement teams to simplify the collaboration model with their suppliers along the innovation process and enhance the combined teams ' capabilities . Several perquisites need to be in place to ensure sustainable innovation success :
• Validating the organisational and cultural readiness for collaboration
• Shifting the procurement mindset from cost reductions to profit improvement
• Prioritising capability areas for supplier innovation
• Identifying and attracting the best suppliers for capability growth
NW : Businesses need to start by identifying the type of innovation they are looking for , whether that ’ s continuous improvement , company innovation or market innovation .
They then need to develop a process to support and enable that innovation – this can be divided into four key stages :
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