COLLABORATION
88% of FMCG companies report more collaborative working compared to just 53% in the public sector. In the manufacturing and automotive industry, 62% of companies see trust improving compared with 41% in the IT & telecoms sector. As for collaboration on innovation, this again sees a significant difference between industries and some surprising results. IT & telecoms show by far the most willingness to collaborate on supplier innovation, both internally (24%) with stakeholders and externally (12%) on innovation with
suppliers. The sector with the least focus on collaboration for innovation is the public sector. Joint planning Collaboration has a very tangible and beneficial impact in terms of the creation and execution of joint plans. Joint business plans are a vital step in delivering business value via supplier relationships. Currently, less than 17% of companies have joint business plans in place with more than 50% of their critical or strategic suppliers.
Joint business plans offer the opportunity for two organisations to work together on something concrete, on which they can see results and share the benefits.
Collaboration boosts continuous improvement for 44% of respondents Types of collaboration taking place (all companies)
We engage in more joint planning 20%
More collaborative working is taking place 66%
Mutual trust has improved
We’re collaborating with suppliers more on innovation 19%
53%
We’re collaborating with suppliers more on continuous improvement
We are working together to reduce supply chain risk 18%
44%
We’re collaborating more internally on continuous improvement 16% We have joint plans in place to create joint financial value 12%
We work more collaboratively on compliance with contract SLAs/KPIs etc. 26% We’ve established a better understanding of mutuality (more win-win outcomes) 25% We’ve established effective and efficient governance 29%
We are better engaged on sustainability 8%
We’re collaborating more internally on innovation 7%
We’ve established a number of shared goals and objectives
24%
We have joint plans in place to create joint non- financial value 5%
Supplier executives are more engaged 23%
Our internal executive stakeholders are more engaged 22%
Other (please specify) 3%
There are fewer disputes and escalations 22%
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STATE OF FLUX
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