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."
In our 35 years of supplier management experience, we at IDAS, have learned that increasing visibility and traceability with suppliers is key. That’s why we put into practice the phrase we so much believe in: "Communication. Communication. Communication. Don’t tell them, show them.” When we provide support with action, we can help achieve better supplier collaboration.
The first stage in achieving supplier collaboration is defining both strategic and tactical goals.
Here are a few strategic goals:
Here are a few tactical goals:
So how can you better collaborate with your suppliers in your workday?
This is our 3-step approach:
It's time to become proactive!See it in action