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What voice of the supplier research can do for you
While this exercise does shed some light on the rela- tionship, it is rarely used to inform ongoing SRM and in most cases is filed away. In reality, this exercise can be used to establish a high level view of the overall relationship. This requires the ability to put yourself in the supplier’s position and honestly appraise how you might be regarded. To do this you need to understand what the supplier sees as attrac- tive in you as an account and also what they regard as value. While this is without doubt a useful exercise, it does require a lot of second guessing and does not get information directly from supplier. Voice of the supplier has become the generic term for almost any kind of supplier survey, from a basic ‘happy sheet’ approach consisting of a few basic questions, to a more detailed and scientific analysis. Here we will examine what voice of the supplier research can achieve and how it can be approached.
Voice of the supplier research reveals how your stra- tegic and preferred suppliers rate the quality of your business relationship across a number of attributes – both ‘hard’ in terms of processes, controls and governance, etc. and ‘soft’ in terms of communica- tion, transparency, openness, etc. Question sets need to be intelligently designed around generic good practice and also tailored to gather data specific to the organisation. Leading approaches to voice of the supplier research will compare certain attributes of your organisation with their other comparable customers. These may include some of your direct competitors, but are also likely to include organisations that are similar in size and scope of requirements. This will enable you to not only benchmark against your own industry but also a wider market. When conducted by a third party organisation, it will also be possible to gain insight on how you compare to ‘best in class’ and if you are considered a customer of choice. The information gathered will highlight areas for improvement to enhance supplier relationships and deliver more value. For organisations that are in the formative stage of an SRM programme, this information provides a focus for the design of the programme, uncovering both risks and opportunities that need to be addressed. Where an SRM programme is already in place, voice of the supplier studies can be used to baseline and then measure progress.
Voice of the supplier research positions you as a company that is prepared to listen and respond to concerns and can also build on strengths. In addi- tion, this research provides a really interesting and stimulating discus- sion topic at supplier events.
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