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Our Expertise

Supplier Management

Unlocking the best performance and value from your suppliers with Supplier Management

Supplier management is the systematic approach to get the best value and risk reduction from your supply chain through the lifetime of your relationship.

If you have any doubt about why you need to spend resource on supplier management, consider this:

50%+

Organisations often spend more than 50% of their revenues with suppliers.

55-65%

of innovation comes from suppliers.

11%

On average, supply chain disruptions decrease shareholder value by nearly 11%.

Managing suppliers effectively can differentiate you from your competitors and give you an advantage in your marketplace.

The benefits of a high-quality supplier management approach

There are measurable benefits of well-structured supplier management.

Savings

Organisations that lead in supplier management can deliver average savings of 3-4% on an ongoing basis.

Reduced third-party risk 

Although hard to quantify, reductions in third party risk can include supply disruption, reputational damage from impacted customer services and less harmful news impacting shareholders.

Increased innovation

55-65% of innovations are typically sourced externally, and 25-45% of revenues across all sectors come from product innovations.  

Our approach to Supplier Management

Future Purchasing helps you build a value-driven approach through consistent and coordinated coaching, training and consulting. The three fundamental foundations of our market-leading methodology are segmentation, performance management and relationship management.

Segmentation in Supplier Management

Our approach to supplier segmentation links business strategy to supplier management, ensuring that we are focussing in the right areas, with the right amount of resource. This is not a static model and will require regular review. It is important that both parties commit to working on joint value creation opportunities. Building this reality into the process means that we can optimise what we are achieving with the supplier base at any one time.  

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Performance Management

Understanding the performance we are achieving with suppliers is core to making sure we are achieving the value we expect from our category strategies and our contracts. It is well known that the amount of value delivered decreases from the point of contract signing unless we take an active role in managing that delivery. Our starting point is having great performance measurement approaches in place. From here, we can work with suppliers regularly to make sure that performance meets the levels we agreed. If there are issues, we can use well-structured performance improvement tools to deliver the value we expect. This often addresses areas of broader risk management as well as any specific improvements needed.

Relationship Management

A small number of suppliers are often crucial to delivering our organisational strategies. For those suppliers, we need to make sure we have great alignment between what we need to achieve, and the supplier’s focus and capability to deliver those outcomes. By developing the appropriate supplier relationship management strategy, we can manage these essential relationships.

Our supplier management toolkit is fully developed, with a wide range of individual tools, templates and guides that help your teams develop the right approaches and the best outcomes with your suppliers.

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“The high standard of Procurement that was taught – the bar and quality was set very high and everyone aimed for it!”

Head of Indirect Purchasing – Multinational Hospitality Company

Simple. Connected.

We reinforce the linkages between supplier management and category management to obtain consistency of process, tools and techniques wherever possible. We aim to make these ways of working simple to understand and easy to use, as they are as likely to be used by business stakeholders as they are by procurement professionals.

This is supported by our world-class education programs, which include both formal training sessions and workshops that address your supplier challenges. We also provide a range of coaching and mentoring approaches to ensure that your team not only understands the concepts and tools but can implement them effectively.

Included in our approach is the full suite of behavioural and change management tools necessary to lead a supplier management programme successfully. This includes a range of stakeholder engagement and communication approaches, designed to encourage the co-creation of performance and/or relationship approaches and deliverables.

What does it take?

Achieving a value-driven approach to Supplier Management and getting the right outcomes often takes time and effort, as we need to develop the right relationship with suppliers, even when the relationship history has been challenging. Making sure that there is a well-managed approach ensuring that delivery stays on track is a factor in maximising the delivery achieved. Our programs all contain progress reviews, resource reviews and checks on the quality of outcome to make sure you get what is needed.

How we can work with you to deliver excellent Supplier Management outcomes

Our consulting, coaching and training services deliver supplier management excellence. They are available to both procurement professionals and stakeholders alike. ​ We blend and customise our three core services to fit your team’s requirements.

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Procurement Consultancy

We fill gaps in procurement teams where in-house capability is missing. We undertake planning and strategic alignment activities where there is no internal resource.

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Procurement Coaching

Our experts lead virtual or face-to-face classroom events by introducing the key tools and concepts of strategic alignment. Participants build their own strategic alignment plans.

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Procurement Training

We work on real strategic alignment projects, providing coached planning support and facilitating key meetings with stakeholders to ensure that tools are applied correctly.

Other areas of expertise

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Strategic Alignment

Aligning procurement activity with broader business strategy delivers sustainable outcome, improved stakeholder engagement and competitive advantage

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Category Management

Building and implementing category strategies rich with innovation and improvement opportunities is at the heart of long-term business value delivery

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Procurement Negotiation

Maximising procurement negotiation outcomes through great planning, technique and alignment with category and supplier strategies