Supplier Management

The 950 participants in our 2007 supplier management research identified an average of 23% additional value available from their strategic relationships.  This scale of opportunity is why most major organisations have supplier management in their Top 5 objectives.  It is also why we have built a leading capability in this area, staffed by industry experienced practitioners.

All organisations have a number of strategic relationships that are underperforming.  These are readily identified due to poor service, poor quality performance and poor working relationships.  The impact of relationship underperformance can be substantial: increased risk, time wasted resolving issues, loss of revenue, service failure and biggest of all, the opportunity cost of not unlocking the full value available.

We use our proprietory supplier management process and tools to engage stakeholders from both sides and identify the root causes of problems and areas for value improvement.  The findings and recommendations are summarised in a Relationship Diagnostic Report that includes a practical Relationship Re-launch Plan that directly addresses the root causes of the underperformance.

Our experts then work with client teams to deliver the value improvement opportuntities identified through clear communications, disciplined planning, continuous monitoring and a focus that comes from feeling accountable.

Benefits we have delivered to our clients by re-launching relationships include:

• Reducing risk and exposure
• Clarifying internal responsibilities and improving communications
• Improving service and quality performance to contract
• Increasing revenue
• Increasing innovation capture
• Delivering cost reductions and value improvement
• Implementing standard performance measurement systems
• Integrating processes between clients and suppliers

For more information and further resources on Supplier Management, please review our Insights & Briefings where a range of topical Insight Guides and magazine articles can be downloaded.