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RISK The complexity of risk is increasing, as are the regulations, fines and the impact of inci- dents on share prices. Supplier risk and resilience can be assessed both through deep auditing and automated information assessment, incorporating accreditations and compliance tracking. Core documents such a business contingency plans can be stored, as well as integration with more dynamic sources of third party risk information. Risk and issue management through classic workflows that enable escalation and approvals, all enable the rapid management of risks and incidents. Suppliers are provided with a channel for reporting upcoming disruptions in the supply chain and become integral to efficient supply chain risk management and mitigation. INNOVATION P&G, Unilever, Kraft Foods and others are capitalising on supplier innovation for growth and differentiation. A clear innovation management process ensures business challenges and innovation briefs are clearly communicated to the supply bases, submitted innovations are followed up by the appropriate teams, and a transparent evaluation process is in place. Guided and open innovation capabilities enable suppliers to be engaged in identification, creation and management of innovation to meet client challenges. SUSTAINABILITY AND CSER From supplier work conditions and safety to reduced carbon footprint, the focus on better management of the supply chain is increasing. Clearly defining and aligning the CSER agenda and objectives of both the buying and supplying organisations is critical. Then auditing and assessment capabilities linked to deeper, often on-site assessment capabilities should be available, and this should be supported with structured action planning and progress management. BENEFITS MANAGEMENT Financial performance and benefits management support the key objectives of the procurement team, finance and the business. Approval flows allow finance and leader- ship review as well as integration with other capabilities, overall progress reporting and auditability. The financial as well as non-financial benefits of effective supplier manage- ment become measurable and quantify the results of good supplier management practices. Results driven SRM drives people’s behaviours and focus on creating added value and tangible business performance. PROGRAMME MANAGEMENT For many companies, key projects need to bemanaged in an independent yet integrated way. This can range from an overall cost reduction programme to product specification changes. Programme and project management capabilities need to enable this through workflow, surveys and decision trees linked to analytics and dashboards. These become important when you are looking to guide and help existing users or when you are looking to embed related activities, for example category management and supply base segmentation. INTELLIGENCE Every aspect of successful SRM depends on readily available, accurate information and the ability to access, analyse, share, work with, and report it. A single source of real time supplier intelligence, business and supplier dashboards, data and analytics becomes imperative for rapid action based on common information. Potential sources of intelli- gence include internal and external systems, suppliers, internal stakeholders and publicly available information. These should all be channelled around the business objectives, for example third party information feeds should support the focus on specific suppliers, cate- gories or business issues with risk or CSER.
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