Improve Procurement Effectiveness
supplier development
Revolutionizing Procurement
unleash the power of supplier development
Supplier Development is one of the most underutilized practices in today’s procurement operations. Challenges in strategic supplier development stem from prioritizing short-term costs, limited awareness of benefits, and the perception of being time-intensive or resource-heavy.
Overview and Benefits
what is it?
Supplier development is working collaboratively with critical, strategic and high-potential suppliers (performing at all levels) to improve their capabilities and competitiveness in the areas of cost, quality, performance, and sustainability for the mutual benefit of both the customer and the supplier.
benefits
The list is long. By implementing a comprehensive supplier development plan the benefits will be tremendous. The achievements will result in increased quality and performance, reduced costs, improved supplier relationship and trust (both parties), and culture of continuous improvement.
5 Proven Strategies
supplier development programs
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1. quality process
Execute programs to focus on processes like quality audits, claims processing, DPPM measurements, COPQ process, SCAR/8D process, and more.
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2. supplier performance
Organization of performance segmentation, supplier scorecard model, delivery, lead-time, service levels, audit, and value add measurements.
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3. cost management
Implement programs for cost savings initiatives, payment terms, benchmarking, supply agreement, historic price development, increase push-back.
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4. supplier relationship management
Establish supplier relationship program to include consistent and transparent communication and periodic supplier business reviews.
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5. compliance program
Implement sustainability audits, SBT initiatives, code of conduct process, Business Ethics, Labor/human rights, environmental, health/safety standards.
Our Services
what we do
cost management
Implement cost management tools for savings initiatives, workshops, payment terms, business reviews, supply agreements, TCS review process, price increase push-back
supplier rationalization
Perform RFI/RFQ quoting process, NDA, sustainability audit, code of conduct (CoC) questionnaire, financial review (FSA), sourcing board process. (Performance)
market analysis
Conduct market analysis to include commodity price trends, general economic trends, potential supplier pooling, Kraljic matrix, finalize sourcing plan.
category management
Develop category plan for specific crucial products and materials, followed by a category strategy with key sourcing objectives that align with organizational goals.
negotiations
Conduct Total cost to serve (TCS) review, Should Cost model, supplier visit process, sourcing board price comparison (SBPC), quality audit (SQA)
supplier innovation
Drive supplier savings via collaborative workshops with suppliers (i.e. VA/VE, Innovation Workshops on materials and processes), utilize E-Savings tools for reporting.
Quality Process
Implement quality tools such as Quality Audits, Claims Process, DPPM KPIs, COPQ KPIs, SCAR/8D process, and more.
compliance programs
Develop requirements to key suppliers for sustainability audits, SBT initiatives, code of conduct requirements, business ethics, labor/human rights, environmental, and health/safety standards.