Beyond Transactions: Exploring Return on Relationships in Supplier Management
Supplier Management has evolved dramatically over the past decade or so. Historically viewed as a cost centre, it has been undergoing a paradigm shift, with more organisations recognising that, when approached strategically, it is not merely an operational necessity but a critical investment with the potential to yield substantial returns.
Many now rely on close collaboration with suppliers in order to anticipate challenges and capitalise on opportunities for mutual benefit. The ability to cultivate strategic partnerships with suppliers – a concept we call ‘Return on Relationships’ (RoR) - can provide a significant competitive advantage and position your organisation for future success, however not all organisations utilise this approach.
That’s why we have chosen ‘Return on Relationships’ as the main theme of this year’s 2024 SRM Research. We will consider what it means to shift from viewing suppliers merely as vendors to acknowledging them as critical stakeholders in a company’s success. The research will explore what companies are currently doing to work towards a relationship-first approach. What is working well and what still needs to be done to achieve stronger supplier relationships.
We’ll take a deep dive into topics such as why a relationship-first approach is the future of procurement, the ‘RoR’ it delivers, and we’ll cover what you can do to enhance your supplier relationships for competitive advantage.
A call to action for CPOs
For CPOs, embracing RoR is not merely a strategy but an urgent necessity. Volatile market conditions, rising global competition and sustainability goals demand a swift pivot towards relationship-centric procurement practices.
By championing RoR, CPOs can build resilient supply chains, mitigate risks more effectively and drive innovation and improved sustainability practices.
How good is your Supplier Management programme?
