The Challenges of Supplier Collaboration in Procurement
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Whether your company is looking to accelerate product development times or achieve greater supply chain visibility, working with suppliers as true partners will make a significant difference. However, supplier collaboration is often a challenging aspect of procurement to implement, especially when done at scale. The best supplier relationships support mutually beneficial outcomes in both the short- and long-term, leveraging the full capabilities of the buyer and the supplier to achieve competitive advantages.Read more:retailexpress.com
This type of deep supplier engagement requires a highly collaborative culture that is based on mutually beneficial goals, and the development of a clear communication plan. For this, it is critical to get early buy-in from key stakeholders, including those from commercial, R&D and sustainability functions that may not be used to working in a cross-functional way.
From Vendors to Allies: Maximizing Success with Proactive Supplier Collaboration
Another key challenge is the need to prioritize supplier collaboration within the broader procurement strategy and for there to be a commitment to regularly meet with strategic suppliers, with the agenda focusing on businesswide objectives rather than operational performance concerns. This regular interaction will help to establish a strong relationship of trust and provide the opportunity for both sides to understand each other’s goals, strategies and challenges.
As with any new initiative, it can also be difficult to maintain a commitment to a supplier collaboration program over time. Participants can become distracted or given new priorities, and the effort to change established ways of working and tools can be a challenge. This can be mitigated by having the ability to create project-based programs, on a central collaboration platform, that are centred around clear goals.
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