Our extensive understanding of Manufacturing and Logistics means we know ‘What Fit for Purpose Services Look Like’ and who the leading Strategic Suppliers are that can deliver utmost value to you, on a sustainable basis.
We know the Strategic Suppliers in the Manufacturing and Logistics marketplace, really well:
Their strengths. The key attributes of each Strategic Supplier and what internal client disciplines you will need to have in place so they can achieve your outcomes and objectives, quickly.
Their challenges. Complex service delivery does not always go to plan. We can advise you what diligence your team can put into place to assure these Strategic Suppliers deliver to your expectations.
Their contractual constraints. We know what most Strategic Suppliers will accept contractually, what they will not, and why. Our ‘Optimise’ process assures you can overcome these constraints and be fully contractually protected for fit for purpose services.
Your key expectation you should have from Strategic and Complex Supplier Relationships:
Optimum value in service and solutions delivery. These specialist suppliers represent themselves as ‘experts’ in their disciplines. Recent case law determines you can often rely on the supplier’s represented expertise to drive maximum value for money in your service delivery, even if your contract terms are ambiguous in terms of their responsibilities.
Benefits of using BPG to facilitate your Strategic Supplier Relationships
We know what practices work really well. Having optimised over 500 complex supplier relationships, we have deep expertise of trust building in relationships. We also have proven template documentation, including procurement structures, service requirements, agile fit for purpose contracts, implementation and operating governance, along with expertise in what actions you need to avoid to make sure your strategic supplier relationships achieve your outcomes, quickly.
Key Considerations when Manufacturing/Logistics Companies enter into Complex Supplier Relationships
How the BPG 'Optimise' Process delivers great Strategic Supplier Relationships
The BPG ‘Optimise’ Method is evidenced from over 500 complex supplier relationships. It shows there are 8 characteristics present in every successful complex relationship. We can help you successfully implement these quickly to improve service innovation, supplier relationships and drive down BAU costs.
Click here to see how the ‘Optimise’ process can help you drive maximum value in your Strategic Supplier Relationships.
Examples of the types of Complex Supplier Relationships we help you optimise
The Behaviours you should expect from a 'Good' Strategic Supplier Relationship
Objectives being met
Critical friend supplier
Inherent commercial trust
Sustained collaboration and innovation
Reduced service cost
High reputation with your peers
Internal team aligned
Services always aligned to outcomes
Flexible/agile contract structure
Evidenced based results
Typical Supplier Relationship hurdles faced by Manufacturing/Logistics Companies
We’ve dealt with optimising over 500 complex supplier relationships. More than 50% of complex supplier relationships experience misunderstandings between client and supplier over your requirements and expectations.
If the right foundations are not in place to drive maximum value, you may experience:
Additional charges and costs for ‘misunderstood expectations’
A lack of understanding of contractual roles and responsibilities
Governance and performance escalation not clearly delineated
Senior client executives not being clear on their expectations and dynamics of the relationship
Not enough investment by senior executives in the resourcing or skills of the client supplier management team
Loss of key in-house expertise to the supplier (inadvertent staff poaching)
Employee resistance to new working methods from the supplier
Clashes of culture between client and supplier staff and so forth.
Operational challenges faced by Manufacturing Companies
The manufacturing sector accounts for almost 1 in 4 of the world’s employees, according to research by The World Bank.
Having optimised over 500 complex and strategic supplier partnerships, we have direct experience of how manufacturing and logistics companies need ‘Intelligent Suppliers’ to help them innovate to increase product sales, improve production effectiveness and reduce BAU costs. Some of the biggest challenges facing the manufacturing sector in our experience are:
Regulation and Compliance. The sector is always facing increasing regulation and compliance measures. From health and safety to waste management, it’s a significant burden, as is the tracking of raw materials used during the manufacturing process and a lack of transparency through the supply chain.
Staff Shortages. Recent studies have indicated that up to 50% of jobs in the sector will remain unfulfilled due to a lack of younger individuals coming into the industry. Significant investment in automation may reduce this deficit, but indications are that the level of investment is not sustainable for many organisations.
Global Competition. The internet enables competitors to offer their products in a country without the need for any set-up costs or logistics aside from a delivery mechanism. Research indicates that the global competitiveness of manufacturing companies in much of Europe is expected to fall next year.
Automation. The potential automation of workforce tasks is highlighted as a positive opportunity, believing it empowers workers and allows them to focus on ‘higher-value’ activities. In turn, this leads to an increase in the sales margin of products and helps to drive down BAU costs.
The investment in much more holistic IT systems and production process technologies is seen to help enable organisations, by providing significant increases in both production effectiveness and much greater traction with partner customers and ‘Intelligent Suppliers’.
What stage are you at in your Strategic Supplier Relationship?
You’re procuring or contracting and you need it to work really well.