There is an intrinsic link between effective SRM and innovation –
one of the reasons why the ability to harness suppliers ’ creative
thinking is such an important part of the business case for SRM .
Innovation brings tangible benefits for 39 % of respondents , although
quantifying these in financial terms can be dificult . ( SRM technology ,
discussed on page 24 , could help here .)
Leading companies understand that they can trust their suppliers to
know what they are doing and that there is , therefore , no need to
spend a lot of time telling them how to do their job . Instead , they
build a relationship that actively encourages suppliers to present
ideas based on their own insight . And , critically , they respond
promptly to those supplier ideas rather than letting them disappear
into a black hole , never to be seen again . When that scenario
happens , it is incredibly frustrating for suppliers , who will quickly
learn not to waste time sharing ideas with companies that treat them
this way – and may of course mean that they share their ideas
instead with the companies ’ competitors .
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