SUPPLIER MANAGEMENT
In the procurement world, incentives and reward programmes are a strategic approach to supplier relationship management( SRM). Stepping outside traditional practices of penalties to enforce supplier compliance, incentive and reward programmes change this dynamic by motivating suppliers to exceed expectations rather than simply meeting them.
Rather than defining success as‘ no contract breaches’, these programmes create a positive goal for suppliers to pursue, whether that be through developing innovative products, reducing costs or hitting sustainability milestones.
Why does this matter? When suppliers know that exceptional performance is recognised and rewarded, three things tend to happen:
• First, innovation flows more freely. Suppliers reserve their best ideas
104 June 2026