People do business with people, so managing business relationships comes to down to managing people. In order to have effective relations, you need to think beyond vendor ratings and Service Level Agreements. Knowing where you stand, how important and attractive you are, and knowing what you want out of the relationship, are key components to start managing the relationship. And don’t forget that one business unit’s needs can be totally different from another’s.
Our programs start by explaining the essentials of SRM, and we help you to classify your suppliers, and map the right relationship that’s needed to achieve your goal. Whether you are working in a monopolistic environment, or with a simple product specification with lots of suppliers, the way you structure the relationship shapes your success.
So how do you manage supplier performance, and how do you create an effective vendor rating system? How do you make sure you have access to new innovations and technology, and how do you ensure quality is delivered in line with your requirements? And how do you handle your strategic relations to create real win-win situations?
Techniques to bring out the best in a supplier relationship are supported by tools such as Supplier Capability, trust surveys and Sourcing Business Models (SBM) mapping tools. Collaborative contracting keeps your relationship healthy and sustainable. Our trainings rely heavily on the concepts presented by the University of Tennessee and Kate Vitasek‘s book “Strategic Sourcing in the New Economy”.
It is often said that what gets measured gets done. But you need to make sure you have a relationship that keeps you on top of what cannot be measured, because the source of future success is what you don’t know. But don’t worry, your suppliers are working on it! We are exceptionally proud to be the Centre of Excellence for Vested, which is all about creating true Win-Win relations.