Supply Chain Solutions No.37 – Supplier Management, One Voice to the Supplier

In small or large international organisations, it is important to define a single contact window which is responsible for Supplier Management.  Through the supplier’s life cycle, there will be multiple contact windows communicating with the supplier across various departments within the buying organisation, ensuring there is only one voice, one supplier owner amongst all departments is critical in establishing a robust process and long term relationship.

The supplier owner must set the framework in which all cross functional teams operate with a goal of communicating one message which stops conflicting messages going to the supplier or the supplier delivering different messages to various departments in the buying organisation to their benefit.

The framework is built across critical business functions with department heads been the key stakeholders.  The supplier owner must ensure the framework delivers business governance and commercial boundaries with buy-in from all stakeholders.

With the framework set, it is the supplier owner and department heads role to deliver the policy and objectives of the framework.  Where conflicts of interest occur, it is the supplier owner’s responsibility at a higher level to adjudicate and make the final decision.

Supplier scorecards are essential tools to ensure all stakeholders grade a supplier’s performance against reportable and transparent KPIs to form a total picture of the suppliers’s ability and ranking against other suppliers.  The supplier owner as the leader of supplier management will use this to define the supplier matrix and necessary corrective action plans that build a continuously improving supplier network.

Read more about Supplier Scorecards; http://wp.me/p7z4o2-rZ

At a simple level where there are multiple players with a voice to a supplier, there is inevitably conflict which disrupts the process and can lead to the supplier failing; this costs the buying organisation and the supplier longer term opportunity.  Ensuring there is one leader of the vendor community that can resolve these challenges with the principal stakeholders buy-in.

ID Global Concepts are experts in supply chain management. We add value to your supply chain through consultancy or management contract to ensure the business has the best practice systems that are the right fit for your business, customer and meet your value expectations.

If you would like to learn, please email us at info@idgc.co or visit our website www.idgc.co

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