Masterclass – Supplier Relationship Management

This workshop aims to equip delegates with the tools to design, organise and deploy appropriate supplier relationships with suppliers across the spend portfolio.

introduction

This intensive workshop explores designing and deploying a portfolio of supplier relationships, managing complex relationships and dealing with dysfunctional relationships.

This course is designed for:

The workshop will benefit senior managers who manage policy and/or a portfolio of suppliers and who wish to develop existing capability in supplier relationship management.

Course structure

A practical two-day workshop consisting of nine sessions involving exercises, case studies, presentations and trainer facilitated discussions. Each of the sessions will be led by an experienced facilitator and will feature the key principles and practical methods which may be used in the supplier relationship process, together with practical case study sessions to maximise the transfer from the workshop to the workplace.

Benefits of attending

Attendance will enhance the capability of attendees to design and manage a portfolio of supplier relationships.

As well as this participants will gain three key benefits from attending:

1. More capability to design and manage a range of supplier relationships, including co-operative relationships
2. More capability to design and deploy an appropriate organisational design so that the client can define roles and responsibilities in supplier relationship management
3. Less likelihood that the client will fail to manage critical supplier relationship appropriately

Key learning outcomes

1. Develop a portfolio of supplier relationships and allocate suppliers into the most appropriate relationship type
2. Develop joint initiatives with suppliers and design and manage appropriate governance and team mechanisms to secure co-operative outcomes
3. Engage suppliers in feedback mechanisms to develop mutual understanding and select the most appropriate dimensions for measurement and feedback
4. Distinguish between supplier performance management and supplier development and design appropriate interventions in each case
5. Develop relationship action plans to target the drivers of relationships and adapt the priorities for a range of different contexts and relationships

Course Content

Developing a portfolio of supplier relationships

• Why we need to segment supplier relationships
• Deconstructing elements of supplier relationships
• Differentiating supplier relationships
• Developing joint cost and value initiatives
• Becoming a “customer of choice”
• Improving supplier performance
• Improving supplier capability
• Developing a supplier relationship plan

Segmenting supplier relationships

• The supply base as a strategic asset
• Identifying the “vital few” suppliers
• Targeting new suppliers and delinquent suppliers

Deconstructing elements of supplier relationships

• The balance of power between the parties
• The allocation of rights and obligations
• The personal dimension between the parties
• How relationships may differ across these dimensions

How to differentiate supplier relationships

• Matrix based approaches
• Resource based approaches
• Reviewing the spend portfolio
• Formal and informal classification schemes
• Treating suppliers consistently across categories

Developing joint cost and value initiatives

• Constituting joint cost down/cost out teams
• Creating an appropriate governance environment
• Creating value, claiming value, and sharing value?
• Identifying suitable projects
• Dealing with obstacles to benefit realisation

Customer of choice and 180 degree feedback

• What is a “customer of choice”?
• Setting up a 180 degree feedback programme
• What dimensions can we measure?
• Dealing with unexpected feedback

Improving delinquent supplier performance

• Enrolling suppliers in improvement programmes
• Executive support for improvement
• Developing contingency plans
• Target setting and incremental improvement

Improving supplier capability

• Supplier development in practice
• Governance needed to sponsor development
• Developing a business case for change
• Market making in practice

Developing a supplier relationship plan

• Category plan and relationship plan?
• What we can change in a relationship
• What we can influence in a relationship
• Key relationship levers