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Improving supplier relationships requires a strong vision and commitment to move beyond conventional procurement practices.
The most successful organizations invest in bi-directional and collaborative supplier management approaches that enable parties in the procurement process to work together for the best possible outcome. For these organizations, a relationship-driven approach is one of the most critical components to their success. Consider the benefits of supplier collaboration where:
- Procurement can make more informed, collaborative and faster supply decisions
- Buyers and suppliers work collaboratively to eliminate inefficiencies and costs from the procurement process, creating financial gains for both parties
- Suppliers are enabled to innovate on the buyer’s behalf to find creative solutions to product challenges and improve marketability
- Suppliers are more transparent with operations, providing procurement with needed visibility
- Suppliers are incentivized to improve performance and compliance
- Procurement limits its exposure to supply disruptions by having a collaborative risk management plan in place with key suppliers
Becoming more supplier-focused requires a shift in procurement viewpoint and a solid understanding of the supply base and objectives. Procurement needs to ensure that its supplier decisions align with the organization’s strategic plan. Eventually, the paradigm needs to shift from “all suppliers are created equal” to “certain suppliers provide more value.”
JAGGAER enables organizations to identify and develop optimal relationships with strategic procurement partners, while providing the tools to foster ongoing collaborative supplier relationships and engagements. Unlike other offerings available on the market, the JAGGAER procurement solution suite goes beyond basic supplier scorecards to provide procurement professionals with an actionable tool for segmenting and managing suppliers based on value, performance, risk and future development. The solution helps procurement to manage risk, improve compliance, build valuable partner relationships and increase visibility across the supply chain.
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