Putting suppliers at the centre of procurement strategy Critical to any organisation regardless of its operating sector , is the need to manage suppliers and spend . “ The amount you spend with third-party suppliers can account for up to 80 % of the revenue of an organisation ,” says Hogg . He expands on the critical importance of spending money with the right suppliers , but also understanding the ways in which relationships with suppliers can be leveraged to support the organisations strategies and initiatives .
“ When an organisation is spending a lot of money with suppliers and is potentially a strategic customer for them , then typically , these are suppliers who will listen and want to align with the strategic direction of that organisation . As such it ’ s not just in the hands of how much revenue or income is being distributed to third-party suppliers but what that means when it comes to the balance of power , and the positioning of lots of potentially softer - but hugely important - strategic benefits that can be driven out from the relationship ,” concludes Hogg .
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