Savvy category managers go beyond identifying and shortlisting suppliers but they put effort and commitment to grow, improve, and cultivate a long term relationship with their suppliers to become mutually beneficial partners. A good category plan actively consolidate the category spend of an organization and focus on key partners that are able to support the organization's long term business growth and requirements.
Supplier Diversity
For category managers who integrate supplier diversity into their category management plan, they must have a scorecard that provides performance review at the global (procurement group) level. In addition to that, the supplier diversity section should also highlight the challenges and risks to supplier diversity for each category, and supplement with key performance metrics such as spend and savings over the past three years. In order to increase the probability of successful partnership, category managers can conduct regular joint workshops with new and existing suppliers that explain what their organization is looking for in a supplier and work with with closely to help the suppliers build that capability.
Support suppliers with the right tools
Having the mindset of becoming a better customer to the top suppliers is the cornerstone of building a successful collaborative supplier relationship. This will let the category managers to focus on ideas that a supplier could do to support the buyer organization, rather than what the supplier is currently doing. In our past articles on Suppliers Performance Management, we had discussed on various tools that allow the suppliers to identify their customer performance, which will improve their ability to meet their customer requirements. The best practices is always have these tools to link their procurement requirements to the business objectives.
Integrated planning and risk management
Category managers should conduct quarterly meeting with suppliers for joint planning sessions that discuss about company updates and future business together, which also includes mutual development opportunities and plans for continuous improvement. On disaster management, supply chain maps and integrated alert system can be implemented to identify potential supply chain disruptions due to natural disasters or other calamitous events. The system should notify the supply chain management staffs and also affected suppliers to quickly work out the next course of action in a collaborative manner.
Supplier Value Management
To create trust-based high quality relationships with the suppliers, a supplier value management process needs to be established beyond traditional scorecards and annual supplier evaluations. Supplier value should be determined by spend, supplier value, and buyer-supplier alignment. This does not always need to reflect cost savings, but supplier innovation should be something that is worth considering. The top-tier suppliers should receive the most management focus at all time.
For category managers who integrate supplier diversity into their category management plan, they must have a scorecard that provides performance review at the global (procurement group) level. In addition to that, the supplier diversity section should also highlight the challenges and risks to supplier diversity for each category, and supplement with key performance metrics such as spend and savings over the past three years. In order to increase the probability of successful partnership, category managers can conduct regular joint workshops with new and existing suppliers that explain what their organization is looking for in a supplier and work with with closely to help the suppliers build that capability.
Support suppliers with the right tools
Having the mindset of becoming a better customer to the top suppliers is the cornerstone of building a successful collaborative supplier relationship. This will let the category managers to focus on ideas that a supplier could do to support the buyer organization, rather than what the supplier is currently doing. In our past articles on Suppliers Performance Management, we had discussed on various tools that allow the suppliers to identify their customer performance, which will improve their ability to meet their customer requirements. The best practices is always have these tools to link their procurement requirements to the business objectives.
Integrated planning and risk management
Category managers should conduct quarterly meeting with suppliers for joint planning sessions that discuss about company updates and future business together, which also includes mutual development opportunities and plans for continuous improvement. On disaster management, supply chain maps and integrated alert system can be implemented to identify potential supply chain disruptions due to natural disasters or other calamitous events. The system should notify the supply chain management staffs and also affected suppliers to quickly work out the next course of action in a collaborative manner.
Supplier Value Management
To create trust-based high quality relationships with the suppliers, a supplier value management process needs to be established beyond traditional scorecards and annual supplier evaluations. Supplier value should be determined by spend, supplier value, and buyer-supplier alignment. This does not always need to reflect cost savings, but supplier innovation should be something that is worth considering. The top-tier suppliers should receive the most management focus at all time.
