STATE OF FLUX
2014 GLOBAL SRM RESEARCH REPORT
ARTICLE 89
We recommend a 360° feedback process is run every 12 to 24 months, and used to help inform a joint account planning session and help both parties continuously improve the relationship. Similar to a customer relationship charter, we recommend that for your strategic suppliers there should be a supplier relationship charter in place. This is a document that both parties agree to, which outlines what behaviours are acceptable in the relationship, what standards both parties need to adhere to, and how you would address challenging situations if and when they may arise. Typically a supplier will undertake an annual account plan on you as a customer. While this activity will always occur, we encourage you to undertake annual joint account planning with your strategic suppliers.
This should cover: ö ö Key areas of focus for collaboration. ö ö Business profile of the relationship.
ö ö Summary of governance model. ö ö Performance history and key risks. ö ö Key stakeholders. ö ö Assessment of strategic value to both parties. ö ö Key actions to develop the relationship / account. ö ö Key actions to develop joint value (including value release plans).
TRAINING BEHAVIOUR
Once you have the basic building blocks above in place, the next question is to ask how you ensure the behaviours your organisation displays towards suppliers reflect the experience you want your suppliers to have on a consistent basis. Our research into SRM people and skills this year has looked at what skills are necessary for good SRM, which of these skills are most in need of improvement and what training organisations have received. What is interesting here is that the behaviour- based skills that are needed the most show the biggest gaps between demand and provision of training. We saw the same picture in 2013. The only topics in which we are adequately addressed (in some cases over-addressed) are negotiation and commercial expertise. Every other SRM related skill is currently under-addressed.
It is key that as procurement we are trained to have the right conversation at the right time with the supplier. And when we have the conversation, we have the behavioural flexibility needed to adapt our approach, build empathy with the supplier’s situation and treat others as we would like to be treated. Let's learn a lesson from the sales world where strategies to create customer warmth and loyalty have been a priority. An important part of our future procurement and SRM strategy must be to create supplier loyalty, like the luxury brand organisations have focused on.
Refer to the people and skills section for more information on training.
Powered by FlippingBook