Supplier Preferencing: A Planned Approach to Supplier Relationship Management
Updated: Dec 24, 2021
Client: Consumer goods company headquartered in the US
Situation: Client wanted to consolidate vendor base for a specific category while centralizing sourcing from existing regional procurement model
Process Initiation: Project kick-off included meetings with central procurement team as well as site-level stakeholders to define project expectations. It was determined that the category was one that involved a Joint Strategic Sourcing Approach, i.e., one where stakeholder involvement would be heavy in strategy creation and implementation.
Situation Analysis: A detailed evaluation of the category and market was conducted. A sample of the results is presented below. Analyzing suppliers and identifying their role was critical to deciding the type of relationship management that needed to be in place.
Strategy Creation: With a Joint Strategic Sourcing approach, several stakeholders were made familiar with the analysis and recommendations which were handed to client for implementation.