COLLABORATION
COLLABORATION
maximise the mutual value of those relationships. The optimum level of value from relationships can’t be ‘extracted’, it can only be released through collaboration. And it’s not just a matter of putting people together and hoping they work as a team. It’s shared objectives, mutual trust, a systematic approach and ensuring the right people are talking about the right things together: That’s what can create value. It may not only involve you and your individual supplier partners, but could also require you to put those partners in touch with one another to work together as part of your wider supplier network. Collaboration is simply a great tool and spans a huge diversity of situations and relationships. It could be engineers on either side working together on the factory floor to fix a broken machine, to their CEOs teaming up over joint objectives. It can cover everything from tactical problem-solving to strategic collaboration on a global scale. While the big-value creation opportunities might exist with your strategic supply partners, collaboration can be invaluable with any suppliers in a set of given circumstances. Numerous companies, for instance, had to collaborate with cleaning contractors to enable a safe return to work as Covid-19 restrictions were eased. Meanwhile sailing Olympian Sir Ben Ainslie, who is leading the challenge to bring the America’s Cup back to British waters, says his organisation is working with suppliers on everything from staying competitive to helping reduce the impact of the pandemic. “We are full steam ahead with the America’s Cup,” he told State of Flux in May. “There is a lot of work behind the scenes to make sure we can stay competitive during these difficult times by working closely with all of our suppliers. We are also working closely with all of our partners and suppliers, and most importantly INEOS, on supporting our local communities and national efforts to help combat the spread of Covid-19. This is a time for collaboration on all fronts.”
The power of teamwork
Feature
Synergistic relationships can deliver more than the sum of their parts, but recognising that fact and making it a reality are two quite different things.
Image credit: Lloyd Images / INEOS TEAM UK
I n the race to be the first to claim a landmark achievement, like landing on the moon, or stage an event with (usually) an unmovable deadline, such as the Olympics, thousands of people can be quickly mobilised to play their part in making history. The same can be said of emergencies. When, for example, rescue teams establish temporary surge hospitals to cope with an influx of casualties following a tornado, tsunami or during a pandemic or soldiers are sent to recover people from the rubble following an earthquake. Each person understands their role and their vital part, large or small, in the bigger picture. But collaboration comes easier in a crisis. A situation where everyone is clear on the objective and invested in its success; where top-level sponsorship is a given and teamwork is required to
A set of activities that when treated holistically combine to optimise supplier management
solve an immediate problem. What is not so simple is to embed collaboration as a business-as-usual approach; to work proactively with suppliers day-to-day to find unexplored or as yet unidentified opportunities. Here we consider what collaboration truly is, why it’s worth the effort and how to get started.
Create Value
Supplier Relationship Management
What it is
Performance Management
Deliver Value
A broad approach to supplier management requires a solid foundation starting pre-contract with category management and strategic sourcing and going on to implement effective risk, contract and performance management. Mature supplier relationship management (SRM), however, means having a higher level of collaboration with your strategic suppliers. Collaboration is about working with suppliers who are vital to the success of your organisation to build trust and
We are working closely with all of our partners and suppliers…to stay competitive and…to help combat the spread of Covid-19. This is a time for collaboration on all fronts. Sailing Olympian Sir Ben Ainslie
Contract Management
Protect Value
Risk Management
Category Management & Sourcing
Capture Value
Time
Contract Award
80 STATE OF FLUX
2020 GLOBAL SRM RESEARCH REPORT
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