PROCUREMENT STRATEGY business but to share these with suppliers . “ These should include the metrics you need to meet in order to be a success , and how your procurement strategy and tactics fit into that broader goal ,” he says .
He adds : “ Strategy sharing should address short- , medium- , and long- term plans , and include a sense of the pains your business is responding to .”
This he says gives suppliers an idea of how they can strengthen their relationship with an organisation based on its priorities , meaning they are better able to meet and understand its needs .
“ This should also be reciprocal ,” Hogg advises . “ Suppliers should be invited to share strategic plans for their own businesses , as this facilitates joint opportunities for mutual growth and development early on in the relationship .”
Data collection is another crucial aspect of strong supplier relations , Hogg says .
“ This allows you to identify areas for improvement or opportunities for growth , in addition to laying the groundwork to prove the value of other engagement tactics .”
He says this data should include indicators of performance , risk , and opportunity , across areas such as spending , quality , sustainability , resilience and innovation .
“ How you collect these will vary ,” he says . “ When it comes to spending , quality , and operational performance it ’ s likely to be a case of enriching the data you already have on a given supplier .”
By contrast , he says for sustainability , the data-gathering process is likely to be more involved .
“ Turning to disclosure platforms is a great way to ease this friction ,” says Hogg .
procurementmag
. com 45