SUPPLY CHAIN
Which sector has a strong record of leveraging supplier expertise ? BR : The consumer products sector has a strong record of leveraging supplier expertise within the product innovation cycle . Companies such as Unilever , P & G , and others are leveraging an increasingly collaborative approach with their suppliers to drive new product ideas , methods to overcome supply chain disruptions , or technical solutions for complex manufacturing challenges .
NW : Product manufacturing , hi-tech , and engineering are examples of industries that are either systematically searching for innovation , conducting specific projects on innovation topics , or being strong in-house , in terms of innovation and bringing in specific external capabilities . leaning on supplier innovation is shifting the procurement mindset from cost optimisation to profit improvements . Collaborating with suppliers early in the innovation process provides capabilities that are not internally available , improves the speed to market , and drives product differentiation .
NW : Statistics show that high innovation companies offer earnings ( EBIT ) growth at two to three times the levels of other more average companies . Other benefits include incremental revenue , profitability , lower costs , and other advantages in terms of service , quality , and features and functionality .
Does tech make supplier innovation easier to access ? BR : Technology is a significant enabler and vehicle for innovation to drive the company and supplier collaboration model . Co-creation and product development cycles have become more accelerated and cost-effective by leveraging technologies such as AR , VR , and AI to reduce the traditional innovation timelines . In addition , pilot programmes and the innovation cycles are further reduced to weeks / months vs . what used to take years of planning and execution .
NW : Technology allows buyers to better engage with suppliers or the broader market ecosystem to , for example , communicate the types or topics of innovation they are interested in , or to improve collaboration between buyers / suppliers in terms of the innovation process . supplychaindigital . com 53