STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
CASE STUDY 191
Our SRM programme is to refocus our collaborative supply chain relationships away from an unproductive focus of ‘us’ to a more virtuous cycle of ‘we’.
INTENT
BEHAVIOURS
From ‘us’ to ‘we’
CONFIDENCE
TRANSPARENCY
NEW VALUE
TRUST
ö ö Having a structured approach in place for jointly identifying, agreeing and delivering new value creation opportunities, and for the collaborative relationship. ö ö Adopting the principle of shared benefits from collaborative endeavours. ö ö Assessing collaborative relationship effectiveness periodically and having a strong continuous improvement culture. ö ö Paying close attention to the factors that might cause the collaborative relationship to end and managing those factors effectively. ö ö Celebrating and communicating success to further build trust and maintain momentum. Q: SO WHAT NEXT FOR YOUR COLLABORATIVE APPROACH TO SRM? PK: This is only the start of the collaboration journey at FirstGroup. We are expanding our SRM programme in the UK to a bigger group of strategic suppliers and are developing a ‘lite’ version so we can apply the principles of collaboration to a wider range of supplier relationships. Furthermore, we are currently in the process of piloting the SRM approach in FirstGroup America.
Q: WHAT ARE THE KEY ELEMENTS OF YOUR COLLABORATIVE APPROACH? PK: While mutual intent will give us a great starting point on the collaborative journey with our key partners, the ultimate aim of our SRM programme is to refocus our collaborative supply chain relationships away from an unproductive focus of ‘us’ to a more virtuous cycle of ‘we’. In doing so, we have found the following key elements are important enablers: ö ö Mutual intent will give us a great starting point on the collaborative journey from ‘us’ to ‘we’: ‘from good intentions good things will flow’. ö ö Establishing a strong internal business case for collaboration and obtaining key stakeholder support. ö ö Creating a clear governance structure for both parties with stakeholders in key roles, who have the gravitas and leadership to ensure collaborative working is championed, well managed and ultimately is effective. ö ö Ensuring the outcomes of the collaborative relationship are closely aligned to each partner’s business objectives and priorities. ö ö Ensuring participants have the right skills, competencies and behaviours to support collaborative working, and the right learning and development systems are in place. ö ö Selecting the right partners and, in doing so, ensuring the case for collaboration is clear and there is a principle of shared benefit.
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