Top Ten Digitalist Magazine Posts Of The Week [June 19, 2017] – Business Intelligence Info

Asasourcingorprocurementmanager,youmaythinkthere’snothingnewaboutsuppliercollaboration。

Yourchiefprocurementofficer(CPO)mostlikelydisagrees。

Forward-thinkingCPOsacknowledgethebenefitofsupplierpartnerships。

Theynotonlyvaluecollaboration,butrequirearevolutioninhowtheirbuyingorganizationconductsitsbusinessandoperations。

“Procurementmuststartlookingtosuppliersforinspirationandnewcapability,stopprescribingspecificationsandstarttappingintotheexpertiseofsuppliers,”writesDavidRaeinProcurementLeaders。

TheCEOexpectsitofyourCPO,andyourCPOexpectsitofyou。

Forsourcingmanagers,thiscanbealotofpressure。

HereareninethingsyourCPOwantsyoutoknowabouthowsuppliercollaborationischanging–andwhyitmatterstoyourcompany’sfutureandyourownfuture。

1。

Theneedforsuppliercollaborationinprocurementisgreaterthanever

Overhalf(65%)ofprocurementpractitionerssayprocurementattheircompanyisbecomingmorecollaborativewithsuppliers,accordingtoTheFutureofProcurement,MakingCollaborationPayOff,byOxfordEconomics。

Why?

Becausethepaceofbusinesshasincreasedexponentially,andbusinessesmustbeabletorespondtonewmarketdemandswithagilityandinnovation。

Inthisclimate,buyersarerelyingonsuppliersmorethaneverbefore。

Andbuyersaren’tcollaboratingwithsuppliersmerelyasprovidersofmaterialsandgoods,butasstrategicpartnersthatcanhelpcreateproductsthatarecompetitivedifferentiators。

Suppliercollaborationitselfisn’tnew。

What’snewisthatit’stakenonamuchgreaterurgencyandimportance。

2。

You’reprobablynotrealizingthefullcollectivepowerofyoursupplierrelationships

Suppliercollaborationhasalwaysbeenafunctionofmaintainingadelicatebalancebetweendemandandsupply。

Forthemostpart,theprimaryfocusofthesupplierrelationshipisensuringtherightmaterialsareavailableattherighttimeandlocation。

However,sourcingmanagerswithanarrowfocusondeliveryaremissingoutononeofthegreatestadvantagesofforgingcollaborativesupplierpartnerships:anopportunitytodrivesynergiesthatareotherwiseperceivedasimpossiblewithintheconfinesofthebusiness。

Thegame-changeriswhenyoudrivethosesynergieswiththousands,nothundredsofsuppliers。

LookattheAppleStoreasaprimeexampleofcollaborationenmasse。

Withouttheapps,theiPhoneisjustanotherordinaryphone!

3。

Collaborationcomesinmorethanoneflavor

Suppliersdon’tjustcollaboratewithyoutoprovideacriticalcomponentorservice。

Theyalsoworkwithyourengineerstohelpensurecostsareoptimizedfromthebuyer’sperspectiveaswellasthesupplier’sside。

Theymayeventakeovertheprovisioningofanentireend-to-endsolution。

Orco-designwithyourRDteamthroughjointresearchanddevelopment。

Theseformsofcollaborationaren’tnew,buttheyarebecomingmorecommonandmorecritical。

Andtheyarebecomingmoreimpactful,becauseonceyoustartextendinganyofthesecollaborationmodelstomoreandmoresuppliers,yourcapabilitiesasabusinessincreasebyordersofmagnitude。

Ifonegoodsuppliercanenableyourcompanytobuilditsbrand,expanditsreach,andestablishitspositionasamarketleader–imaginewhat’spossiblewhenyouworkcollaborativelywithhundredsorthousandsofsuppliers。

4。

Keepingproductsustainabilitytopofmindpaysoff

Facingincreasingdemandforsustainableproductsandproduction,companiesarerelyingonsupplierstoanswerthisnewmarketrequirement。

Asasourcingmanager,youmayneedtogooutsideyourcomfortzonetothinkaboutnew,innovativewaystocollaborateforachievingsustainability。

Recently,IheardfromanacquaintancewhoisaCPOofaleadingservicescompany。

Hisorganizationiscurrentlycollaboratingwithoneofthelargestsuppliersintheworldtoadheretoregulatorymandatesandconsumerdemandfor“leanandgreen”lightbulbs。

Althoughthisapproachwasinterestingtome,whatreallystruckmewashisobservationonhowthisco-innovationwiththesupplierisspawningcostandresourceoptimizationandthedeliveryofcompetitiveproducts。

AsreportedbyAndrewWinstoninTheHarvardBusinessReview,TargetandWalmartpartneredtolaunchthePersonalCareSustainabilitySummitlastyear。

Soevencompetitorsarecollaboratingwitheachotherandwiththeirsuppliersinthenameofsustainability。

5。

Co-marketingisawin-win

Lookatyourlistofsuppliers。

Doesanyonehaveabrandthatisbiggerthanyourcompany’s?

Believeitornot,almostallofusdo。

Sowhynotseizetheopportunitytoraiseyourandyoursupplier’sbrandprofileinthemarketplace?

TakeIntel,forexample。

Thelaptopyou’reworkingonrightnowmayverywellhavean“Intelinside”stickeronit。

That’sco-marketingatwork。

Consistentlyrankedasoneoftheworld’stop100mostvaluablebrandsbyMillwardBrownOptimor,thislargestsupplierofmicroprocessorsisworld-renownedforitstechnologyandinnovation。

FormanycompaniesthatbuysuppliesfromIntel,thedecisiontoco-marketisastrategicapproachtoconveythattheproductisreliableandprovidesrealvaluefortheircomputingneeds。

6。

Suppliersgettochoosetheircustomers,too

Increasedcompetitionforhigh-performingsuppliersischangingthewayprocurementoperates,say58%ofprocurementexecutivesintheOxfordEconomicsstudy。

Buyershavearesponsibilitytothesupplier–andtotheirCEO–tobeacustomerofchoice。

Whentheeconomyisgoingwell,youmightbeabletodictatethesupplier’sgoodsandservices–andsometimeseventheservicedeliverymodel。

Whentimesgettough(andtheycanveryquickly),supplierswilltypicallyreevaluateyourorganization’sneedstoseewhethertheycancontinueserviceinafiscallyresponsiblemanner。

Tosecuresuppliers’attentioninfavorableandchallengingeconomicconditions,yourorganizationshouldestablishcollaborativeandmutuallyproductivepartnershipswiththem。

7。

Supplierscanhelpsimplifyoperations

Costoptimizationwillalwaysbeoneofyourperformancemetrics;however,thatisonlyonesmallpartoftheentirepuzzle。

Whatwillhelpyourorganizationgetnoticedisleveragingthesupplierrelationshiptoinnovatenewandbetterwaysofmanagingtheproductlineandoperatingthebusinesswhilebalancingriskandcostoptimization。

Askyourself:Whichfunctionsarenolongerneeded?

Cantheybeoutsourcedtoasupplierthatcanperformthembetter?

Whatcanbeautomated?

8。

Suppliershaveabettergraspofyoursourcingcategoriesthanyoudo

Understandyourcategorylikeneverbeforesothatyourorganizationcanrealizethefullpotentialofitssupplierinvestmentswhiledeliveringproductsthatareconsistentandofhighquality。

How?

Byleveragingthewisdomofyoursuppliers。

Tobeblunt:theyknowmorethanyoudo。

Tapintothatknowledgetogainasolidunderstandingoftheproduct,marketcategory,suppliers’capabilities,andshiftingdynamicsintheindustry,Ifabuyerdoesnotunderstandtheseareasdeeply,noamountofcollaborationwillempowerasuppliertohelpyourcompanyinnovateaswellasoptimizecostsandresources。

9。

Rememberthatthere’ssomethinginitforyouaswell

Allofuswanttodostrategic,impactfulwork。

SourcingmanagerswithaspirationsofbecomingCPOsshouldmovebeyondwritingcontractsandpushingPOrequestsbybuildingstrategicprocurementskillsets。

Forexample,aworkingknowledgeinanalyticsallowsyoutochoosesuppliersthatcanshapethemarketandhelpaproductsucceed–?

andcancatchtheeyeoftheseniorleadershipteam。

SundarKamakisglobalvicepresidentofsolutionsmarketingatAriba,anSAPcompany。

Formoreonsuppliercollaboration,readMakingCollaborationPayOff,partofaseriesontheFutureofProcurement,byOxfordEconomics。

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