Many of today’s supplier interactions are purely tactical and leave little space for true insights or platform integration. Effective end-to-end lifecycle management leads to a holistic value-based relationship between suppliers and buyers.
To create this type of relationship, operation models that support third-party centricity stances need to be adopted, while fostering innovation and mitigating risk.
Organisations need be asking:
Are our suppliers in tune with our business objectives?
Are we getting what we paid for?
Have all the risks been mitigated and how do we stay on top of them?
Answering these critical questions requires analytics and data which offer a means for measuring performance, identifying opportunities, mitigating risks and helping move the organisation from being reactive to one that is proactively engaged with both the business and its suppliers.
In this report
Examining areas of supplier relationship risk, with a focus on the following topics:
Delivering sustainable supplier relationships and value
We outline the right foundations as the most successful client/supplier relationships. These relationships need to have balanced contracts, be relationship focused and have sustainable negotiation outcomes. There also needs to be a focus on automating low value work and reporting, stopping contractual value leakage and embedding risk controls.
Technology enablement and data visibility
Deployment and full use of contemporary contract management and supplier management technology solutions to smooth the interactions between buyer and suppliers, manage mutual obligations, provide accurate and visible data on the business being transacted and report on performance outcomes.
The pandemic has amplified the impacts of third party and supply chain disruption and challenged organisation’s ability to plan and execute key third-party risk management components.
Supplier relationship management
We explore the specific relationship strategies and actions aimed at improving supplier sentiment should be enacted that organisations should consider. To stand most chance of success, these specific actions to boost the attractiveness of the buyer to business-critical suppliers should be laid on top of the six bedrock foundations of good supplier relationship management.
Culture of trust
A culture of trust is key to unlock the potential of internal resources and external suppliers alike. Organisations with leading supplier relationship management programs effectively extend a culture of trust from their internal organisation to their supply base to the point where it’s difficult to differentiate between organisational and supplier resources. All are working in a unified manner for one common goal.