Supplier-centric procurement practices drive 26% more savings than focusing solely on price reductions.
Despite this, the majority of supplier interactions remain tactical and lack insight or integration. Most organisations struggle to give their strategic suppliers due attention – and a third don’t even know how their suppliers are performing.
The future of procurement demands a new, supplier-centric model; one which integrates relationships, drives performance & innovation and mitigates risk.
A supplier-centric procurement model will allow suppliers to:
- Access key information to help build robust solutions
- Integrate into your environment, via supplier-managed storefronts and master-data portals
- Contribute to business, product and category innovation
- Get feedback through sentiment analysis as well as traditional performance metrics
- Self-manage purchasing transactions through payment.
Supplier-centricity in action
A global technology business has moved towards a supplier-enabled innovation mind-set by launching an open innovation portal for suppliers, companies and individual inventors to share ideas and collaborate on innovation challenges.
Evolving supplier relationships
Moving to the supplier-centric model requires:
- Digital integration and innovation – leveraging technology where it can drive transparency, productivity and migrate risk.
- Behaviour change from suppliers and clients – rethinking how procurement teams interact and build trust with their supply base; and defining the behaviours that will foster trust.
Download Report: Changing Supplier Relationships in the Digital Age
Learn how you can deliver innovation through a supplier partnership model.
It’s no longer business as usual for procurement. The scale and speed of transformation required to address market disruption is extraordinary
Success requires a blueprint for turning disruptive events into opportunities to drive competitiveness and growth.
This is what the future demands of procurement. Contact us today to start moving forward.