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IDAS - Weekly Blog Post 10 January 2021

How to Set, and Achieve Collaboration Goals with Suppliers

The quality of supplier collaboration can mean the difference between an efficient supply chain and poorly executed one. Improving this process can only start when there’s a strong commitment from supply chain partners to work as a team. Per Mckinsey & Company - Taking Supplier Collaboration to the Next Level (July 2020): "Companies with advanced procurement functions know that there are limits to the value they can generate by focusing purely on the price of the products and services they buy. These organizations understand that when buyers and suppliers are willing and able to cooperate, they can often find ways to unlock significant new sources of value that benefit them both.…work has shown that supplier collaboration really does move the needle for companies that do it well. In one McKinsey survey of more than 100 large organizations in multiple sectors, companies that regularly collaborated with suppliers demonstrated higher growth, lower operating costs, and greater profitability than their industry peers."

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