STATE OF FLUX
Delivering rapid results
BENEFITS DELIVERY PRODUCES: > Lower risk ratings > Value release > Supplier commitment > Customer of choice > Innovation pipeline
CEO
Executive
C1
C2
Commercial
Operational
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Governance and Training
360 Review and Insight
Joint Account Planning
Deliver Return on Investment
Understand the true reality of each targeted supplier relationship Under normal circumstances, a 360 review builds on Voice of the Supplier research to uncover the insight needed to engage a specific supplier and develop the mutual value that is inherent to that relationship. This is an important prerequisite to In a crisis, the situation itself will provide the focal point and driving force to be addressed. Understanding (and mapping) the true structure of your suppliers’ supply chains, to the fullest extent, is critical to operating safely. undertaking joint account planning.
Collaborative working to address
Recognising a broad range of hard and
Mobilise people and processes Under normal circumstances, best practice is to: > Introduce supplier management specific role definitions and competencies. > Conduct a capability assessment and a training plan. > Roll-out targeted training. In a crisis, and to implement at speed, place the emphasis on just in time coaching and development rather than traditional learning methods.
common goals Under normal
soft benefits Under normal
circumstances, joint account planning is a high-value activity that capitalises on the common ground that exists between a sales-centric
circumstances, ROI can be delivered in many forms besides lowering risk ratings, including important “soft” benefits such as achieving customer of choice status. As you get through the crisis, it’s important to: > Adopt supplier management as a formal role. > Undertake 360 reviews of selected supplier relationships. > Undertake joint account planning as a systematic way of working (not just as a response to an event).
account plan and a supplier centric relationship plan.
In a crisis, time pressure and the crisis itself will result in joint-account planning being replaced by what might best be described as a “risk response” initiative. Introduction and rapid establishment of safe operating of suppliers is of paramount importance.
> Revisiting supplier segmentation and using it as a dynamic approach to identify high potential, high value relationships – this will mean letting go of traditional segmentation criteria. > Being much better students of our suppliers and their supply chains. > Recognising supplier management as a full-time professional discipline not just something that a category manager can do in addition to their other duties. > Investing in the behavioural skills as well as technical skills that make collaborative supplier management successful.
The steps outlined on above can be achieved in weeks rather than months. But there is an important issue to remember – we are not describing a crisis response, we are advocating a long-term change to how we manage supplier relationships, which means:
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COVID-19 SAFE SUPPLIER OPERATING STANDARD PART ONE
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