BOARD - LEVEL PERSPECTIVE
SUPPLIER RELATIONSHIPS : A KEY TOOL
Technology is making it easier for company bosses to
see thecritical value of their supplier relationships
Business leaders are facing a new industrial revolution .
Technological innovation is changing the world at a speed not seen
in generations and in ways that have the potential to entirely
reshape business as we know it . Chief executives must ensure that
they know exactly what tools they have at their disposal to compete
effectively now and in the future .
One of the most powerful tools available to businesses – yet one
that is not always visible at board level – is a strong relationship with
their key suppliers . My experience turning around The Monarch
Group between 2011 and 2013 showed me that companies have far
more to gain from creating a true partnership with suppliers than
from engaging in an old - style master – servant relationship . In our
case it allowed us to take out £ 52 million of annualised cost ,
representing around 12 % of the discretionary cost base , over just
two years . This was not achieved in one fell swoop but through
thousands of incremental improvements that were achieved by us
working in partnership with our suppliers . It also meant recruiting
skills into the group that resonated with this approach .
Powered by FlippingBook