Supply Management (SOURCE)

Performance Improvement of Supply Management

Performance improvement of supply management can only be achieved in a context where it’s integrated with the corporate strategy. Efficiency and effectiveness of the supply process has to be obtained through “best practices” in each of the process dimensions: organization, content, procedure, systems and performance monitoring.

Increased pressure on costs and margins continues to drive the focus on Spend Analysis and Management; after the low hanging fruit, the next level of savings should be made visible and should be realized. For certain categories of spend, Supplier Collaboration will open opportunities for further performance improvement of your supply. Supply Network Redesign can be a roadmap for structural costsaving. Defining the numbers of suppliers wanted at the different stages (first tier, second tier, etc.). Global sourcing versus local purchasing decisions will have to be taken.

Spend Analysis and Management

A very important step in the process of savings realization is to create visibility on your spend; many barriers need to be overcome to achieve a complete insight in your spend. Spend data is dispersed across multiple, incompatible systems, data quality is often poor and business dynamics have caused the technological landscape to be in a constant change mode, not able to capture all data required.

To identify and realize the next wave of savings opportunities and to increase contract compliance, S&V has developed a specific, 6 sigma compliant, spend management methodology. The Equazion tool allows to quickly profile both supply spend and supplier performance with facts and figures.

Supplier Collaboration

Depending upon the type of commodity and the positioning in a purchase portfolio model, there are different types of supplier collaboration required. The vast potential of knowledge and technology on the market remains for a lot of companies ‘untapped’ because of lack of strategy and processes in place to manage these new supplier relationships.

Operational efficiency, reduced time to market, reduced product cost and increased quality and service levels are only few of the many benefits of an integrated supplier collaboration approach.

Check our Supply Management client portfolio and testimonials.