Buyer-Supplier Collaboration: A Roadmap for Success
Buyer-supplier collaboration unlocks opportunities to lower costs, improve innovation, and go to market with greater agility.Read the article
Are you getting what you want out of your supplier relationships? If the answer is no, you’re not alone. One out of every three procurement executives surveyed is not satisfied with his or her company’s buyer/supplier collaboration program.
Lack of interest is not the problem. Across industries, approximately 85% of buyers segment their suppliers to identify prospective collaborations. So if interest is high and collaborations are supposed to hold the key to increased profitability and more effective operations, how can businesses get the results they’re looking to achieve?
One of the major pitfalls is that many businesses create programs that are focused too narrowly on operations efficiency. Often, these standardized programs never explore shared innovation, speed to market, or improved quality. Most collaborations target the supply chain (62%) or manufacturing (47%) but overlook buyers’ marketing, sales, or business development functions.
Companies have an opportunity to turn their supplier relationships into extended enterprises. Doing so will enable innovation, drive efficiency, avoid major supply-chain disruptions, and eliminate overlapping expenditures.
The best buyer-supplier collaboration programs focus on five essential elements: