Collaborative supplier / customer engagement

I have to say, I worked with both ends of the scale here: absolutely stunning solutions and results compared to zero setup and struggling to understand why this is an important area for any business, even in 2020!

It is a proven fact, that with the right customer / supplier portfolio setup and selecting a corresponding service level for them gives the same or better profitability result as simply pressuring on cost cutting with suppliers and oversupplying key customers.

These depend a lot on the business strategy too, but if the company is in for the long-term, then it is the way to ensure long-term success and the earlier it is established, the better, as these take fairly long time and substantial effort to develop  (like any trusted business relationship).

Key areas we would check for setup and performance are:

  1. Segmentation of partners & products
  2. Level of collaboration (e.g. JBP, JBM)
  3. Level of understanding of each others' businesses
  4. Way of collaboration (i.e. key enablers)
  5. Value chain particularities in the setup, including history of the partnership
  6. Strategy of the partners (globally & locally)
  7. Risk management matrix and risk portfolio methods in place