Our Expertise
Supplier Management
Unlocking the best performance and value from your suppliers with Supplier Management
Supplier management is the systematic approach to get the best value and risk reduction from your supply chain through the lifetime of your relationship.
If you have any doubt about why you need to spend resource on supplier management, consider this:
50%+
Organisations often spend more than 50% of their revenues with suppliers.
55-65%
of innovation comes from suppliers.
11%
On average, supply chain disruptions decrease shareholder value by nearly 11%.
Managing suppliers effectively can differentiate you from your competitors and give you an advantage in your marketplace.
The benefits of a high-quality supplier management approach
There are measurable benefits of well-structured supplier management.
Savings
Organisations that lead in supplier management can deliver average savings of 3-4% on an ongoing basis.
Reduced third-party risk
Although hard to quantify, reductions in third party risk can include supply disruption, reputational damage from impacted customer services and less harmful news impacting shareholders.
Increased innovation
55-65% of innovations are typically sourced externally, and 25-45% of revenues across all sectors come from product innovations.
Our approach to Supplier Management
Future Purchasing helps you build a value-driven approach through consistent and coordinated coaching, training and consulting. The three fundamental foundations of our market-leading methodology are segmentation, performance management and relationship management.
Segmentation in Supplier Management
Our approach to supplier segmentation links business strategy to supplier management, ensuring that we are focussing in the right areas, with the right amount of resource. This is not a static model and will require regular review. It is important that both parties commit to working on joint value creation opportunities. Building this reality into the process means that we can optimise what we are achieving with the supplier base at any one time.
Performance Management
Understanding the performance we are achieving with suppliers is core to making sure we are achieving the value we expect from our category strategies and our contracts. It is well known that the amount of value delivered decreases from the point of contract signing unless we take an active role in managing that delivery. Our starting point is having great performance measurement approaches in place. From here, we can work with suppliers regularly to make sure that performance meets the levels we agreed. If there are issues, we can use well-structured performance improvement tools to deliver the value we expect. This often addresses areas of broader risk management as well as any specific improvements needed.
Relationship Management
A small number of suppliers are often crucial to delivering our organisational strategies. For those suppliers, we need to make sure we have great alignment between what we need to achieve, and the supplier’s focus and capability to deliver those outcomes. By developing the appropriate supplier relationship management strategy, we can manage these essential relationships.
Our supplier management toolkit is fully developed, with a wide range of individual tools, templates and guides that help your teams develop the right approaches and the best outcomes with your suppliers.
“The high standard of Procurement that was taught – the bar and quality was set very high and everyone aimed for it!”
Head of Indirect Purchasing – Multinational Hospitality Company
Simple. Connected.
We reinforce the linkages between supplier management and category management to obtain consistency of process, tools and techniques wherever possible. We aim to make these ways of working simple to understand and easy to use, as they are as likely to be used by business stakeholders as they are by procurement professionals.
This is supported by our world-class education programs, which include both formal training sessions and workshops that address your supplier challenges. We also provide a range of coaching and mentoring approaches to ensure that your team not only understands the concepts and tools but can implement them effectively.
Included in our approach is the full suite of behavioural and change management tools necessary to lead a supplier management programme successfully. This includes a range of stakeholder engagement and communication approaches, designed to encourage the co-creation of performance and/or relationship approaches and deliverables.
What does it take?
Achieving a value-driven approach to Supplier Management and getting the right outcomes often takes time and effort, as we need to develop the right relationship with suppliers, even when the relationship history has been challenging. Making sure that there is a well-managed approach ensuring that delivery stays on track is a factor in maximising the delivery achieved. Our programs all contain progress reviews, resource reviews and checks on the quality of outcome to make sure you get what is needed.
How we can work with you to deliver excellent Supplier Management outcomes
Our consulting, coaching and training services deliver supplier management excellence. They are available to both procurement professionals and stakeholders alike. We blend and customise our three core services to fit your team’s requirements.
Procurement Consultancy
We fill gaps in procurement teams where in-house capability is missing. We undertake planning and strategic alignment activities where there is no internal resource.
Procurement Coaching
Our experts lead virtual or face-to-face classroom events by introducing the key tools and concepts of strategic alignment. Participants build their own strategic alignment plans.
Procurement Training
We work on real strategic alignment projects, providing coached planning support and facilitating key meetings with stakeholders to ensure that tools are applied correctly.
Other areas of expertise
Strategic Alignment
We work with design teams and procurement leaders to identify priority behavioural and technical skills to include in your personalised development programme. We aim for long term skills transfer and we prioritise the transfer of ownership of any change to you, enabling you to define and develop exceptional procurement competence over time.
All our programmes are instructor led and contain the optimum combinations of consultancy, coaching and training based on your requirements.
Category Management
We work with design teams and procurement leaders to identify priority behavioural and technical skills to include in your personalised development programme. We aim for long term skills transfer and we prioritise the transfer of ownership of any change to you, enabling you to define and develop exceptional procurement competence over time.
All our programmes are instructor led and contain the optimum combinations of consultancy, coaching and training based on your requirements.
Procurement Negotiation
We continually refresh our approach based on the findings of our world-renowned category management benchmark survey.
Everyone in the Future Purchasing team is a procurement expert with a minimum of 10 years line and consulting experience. They excel in shifting mind-sets, developing capability, engaging stakeholders and role modelling best practice. All our consultants are adept at dealing with the challenges of embedding learning in large, complex organisations.
Latest Procurement Insights
Be the first to benefit from our Guides, Blogs and Case Studies for best practice in Category Management, Supplier Management, Negotiation and Transformation for the Procurement community.
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