Involving diverse parties allowsus to secure the best and brightest brains to work challenges into innovative solutions
While the focus on innovation has been part of the company ’ s ethos
for some time , SRM at Novartis has only really come into its own in
the past five years or so , Holmes says . “ It began with a procurement
transformation project in 2011 – 12 that looked at how the
procurement function could contribute to innovation in collaboration
with our supplier base . That was when we introduced the SRM
concept , which we call supplier performance and innovation ( SP & I ).”
This name was chosen over SRM to emphasise the initiative ’ s focus
on outcomes , Holmes explains . “ We want to improve performance of
the total relationship and to drive innovation together for the benefit
of both parties .”
Novartis now has a number of SP & I managers who work alongside
the firm ’ s category teams to ensure that procurement , the business
and suppliers are collaborating effectively . “ They focus on supplier
segmentation and on the areas where there are opportunities to
work more closely with our most important suppliers – the ones with
game - changing potential ,” Holmes says . “ They look for ways to add
value beyond the contracts in these key relationships .”
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