In the procurement and supply chain industry, one that is absolutely essential for commercial success globally, yet very undervalued in developing countries. It important to create a strong impact and grow its relevance.
Discussing Supplier Management and its importance, strategic partnerships, operational excellence and business growth are key. Strategic partnerships pay off and effective supplier management drives business success. Companies will reap benefits of collaborative procurement, boosting efficiency and innovation.
In a move that’s sending shockwaves through the industry, forward-thinking companies are revolutionizing their supplier management strategies, fostering collaborative relationships that optimizes lead time, improve quality, and reduce costs.
The following are vital elements of good supplier management: Proactive risk management mitigates supply chain disruptions, joint innovation initiatives yield new product development, transparent communication streamlines processes and resolves supplier related issues, performance metrics and analytics inform data-driven decisions and mutual benefits and shared value strengthen partnerships
Supplier management is no longer just about procurement; it’s about building strategic alliances that fuel business success and should be discussed at all levels.
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Supplier Management remains a core competence for me as I am trained up to masters degree level in Procurement, Logistics and Supply Chain Management from the Salford Business School, University of Salford Manchester.
In developing countries, I found that the current supplier management practices are fragmented and lack strategic alignment, supplier relationships are often transactional, rather than collaborative, communication channels are inadequate, leading to misunderstandings and errors, and performance metrics are not consistently tracked or utilized.
Recommendations for the optimization of supplier management include developing a strategic supplier management framework, aligning with business objectives, establishing collaborative relationships with key suppliers, implementing transparent communication channels and regular feedback mechanisms. There is a need for the development and tracking of performance metrics and driving continuous improvement.
The Implementation Roadmap of a Supplier Management framework is triggered by development and supplier segmentation. Following this, a collaborative relationship establishment with key stakeholders and communication channel setup should be achieved. Furthermore, performance metric implementation and tracking is essential for stability and then Continuous monitoring, improvement, and supplier development/portfolio management.
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Business leaders should be aware of the many benefits of strategic supplier management, highlighting a few; It will cause Improved supply chain resilience and reduced risk, Enhanced innovation and new product development, Increased efficiency, reduced costs, and improved quality and Strengthened supplier relationships, driving long-term partnerships.
Effective supplier management is a critical differentiator in today’s competitive market. By adopting a strategic, collaborative approach, we can unlock new value and foster business success. Prompt implementation of these recommendations is essential to realize the benefits of Supplier Management.
Obinna Nwodo is a two-time author of books on Supply Chain Sustainability and Procurement & Inventory Optimization. Additionally, he has been recognized locally and internationally with multiple awards for innovation and leadership. Recently, he won the Huawei Future Awards and the Global Award. Also nominated for the prestigious Fortunna Global Excellence Award happening in Dubai in December 2024 for the Supply Chain Manager of the Year.
