ARTICLE ARTicle 162
STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
2. Looking at our supplier development module, we redesigned the programme to provide more flexibility in howwe manage suppliers based on the types of services provided. In everything we do, we ask the simple question, ‘what value does this bring HP and the supplier?’ 3. In our supplier relationship module, we’ve revamped our Innovation & Collaboration Initiative (ICI) programme. This is our value- driven programme where we partner with suppliers to drive new thinking and discover new ways to add value. 4. In our supplier performancemodule, we’ve enhanced our supplier survey process to have stronger partnerships with our internal stakeholders, driving a ‘one HP voice’ back to our suppliers. We are starting to drive a 360° review programme where we also survey our suppliers. This allowsus todoa skills gapanalysis.We’re also spendingmore timewithour suppliers, helping themunderstand our performance expectations and what success looks like. 5. Finally, we completely revamped our supplier recognition programme. In addition to our annual recognition, we’ve created a ‘rapid recognition’ process which allows our category teams some flexibility in providing real time recognition to suppliers based on their actions supporting HP (for example, meeting a critical timeline on a hot project). Q: What key actions or initiatives do you have planned over the next 12-18 months within SRM
information and technology?
BM: In the near term, training and programme adoption will be our key deliverable. We’re also focused on streamlining our tools, processes and procedures to ensure we’re providing our category managers with what they need to be successful in SRMdeployment. This includes consolidation of data storage and easy access to critical information. And finally, in the long term, we’re exploring the continued expansion of SRMthroughout our supply base. Thiswill require us to develop levels of supplier engagementwithin the supply chain, butwill ensure we have a fully comprehensive SRMprogramme. Q: What do you see as being the main benefits of strong SRM information and technology? BM: 1. Ability to have the right data when needed. Our best use of resources is to be strategic advisers to our internal customers, not spend time pulling data. 2. Ability to centralise supplier information, not just internal data points, but external market intelligence. 3. And finally, the ability to consolidate our tools, processes and procedures. Collecting data does not make you strategic; it’s what you do with the data that defines our strategic value to our stakeholders. A robust information and technology programme allows us to focus our resources on delivering this strategic value through our SRM programme.
SUPPLIER RISK, FINANCIALS, INTELLIGENCE AND COMMUNICATIONS
It is also clear that the technology enablement needs to be pragmatic and purposeful. At Tesco Bank, Gill Cairns, Director of Procurement & Supplier Management and George Maguire in supplier management, have assessed their current state and are leveraging technology in a number of ways to deliver efficiencies and business benefits directly linked to their industry. Q: What are the key actions or initiatives you have taken to improve your SRM information and technology? Gill and George: Over the last 24 months, we have undertaken a full review of the tools we currently use or have access to within the procurement and supplier management function of the Bank. We canvassed the wider supplier management population within the business to see (a) what could be improved, (b) what information they need access to and (c) what would be the best way to
deliver this. As a result of these proactive activities we now have an eSourcing tool and workflow system for sourcing and procurement projects, providing oversight and an audit trail to activities. We reviewed our supplier management reporting requirements, from day-to-day reporting to the demands from various committees and the board. We then simplified the business wide data capture process while dramatically improving the reporting ability of the central supplier management function. This has substantially reduced the need for re-keying of data and provides us with one version of the data across multiple reporting requirements. We now have functionality to electronically store contracts, record key activity dates and generate reporting from this to ensure review dates and any cost change dates are identified in sufficient time for review and action.
Powered by FlippingBook