managing your suppliers makes perfect sense

10
Supplier Management A guideline

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A quick overview and guideline to manage your suppliers effectively

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Page 1: Managing your suppliers makes perfect sense

Supplier ManagementA guideline

Page 2: Managing your suppliers makes perfect sense

Overview

As technology and skills advance companies both large and small are appointing strategic suppliers to help them to develop and produce their products

Successful product delivery

Good governanc

e

Vested interes

ts

Strategic partnershi

ps

Page 3: Managing your suppliers makes perfect sense

Understanding the Product Life Cycle

Business Roadmap for calendar year

It begins with defining the company’s vision and mission

Planning the Product Roadmap

Defining the concept

Defining the business rules and product specifications

Developing and Launching the Product

Develop the Product

Project Initiation Project Planning Project Execution Project Closeout

Launch the final product

End of Product Lifecycle

Conduct Analysis and Research

Findings are documentedDocument is reviewed by nominated stakeholders

Stakeholders approve and sign off concept

Hold workshops to define the business rules and

userability of the product to be launched

Findings are documentedDocument is reviewed by nominated stakeholders

The business rules and product specifications are approved by

the Business Owners and nominated stakeholders

Document distributed to Development team

Identify concept for production

Team is appointed to proceed with

the marketing plan

TIME

SALES

Introductory stage

GrowthStage

MaturityStage

DeclineStage

Defining the Marketing Plan

Concept is aligned to the marketing strategy and financial planning for

calendar year

Findings are documentedDocument is reviewed by nominated stakeholders

The Marketing strategy and financial planning for the concept are approved

by the Business Owners and nominated stakeholders

Business rules and product specifications

commence

The objectives will outline· Who we are as a company· What do we want to achieve· How do we want to achieve this· The timeline to meet these objectives

These objectives are communicated

to the business units

TeamsManagersCustomers

Results in

Product Life Cycle

Page 4: Managing your suppliers makes perfect sense

Companies and businesses today

Corporations and businesses today have a purpose to meet the stakeholders needs by producing goods and services to improve the lives of users; by providing jobs and enhancing the workers’ quality of life. This can be managed by developing a strong network of suppliers and business partners. Ultimately this provides resources for valid improvements, great innovations and definite returns to the business. At the end this equals that the business benefits have been produced and realised.

The supply management organization must create an atmosphere of collaboration and provide a comfortable meeting area where cross-functional teams can meet and work together towards success.

Page 5: Managing your suppliers makes perfect sense

Suppliers today

To achieve greater profitability and gain a competitive edge, many more companies are partnering with their suppliers, borrowing elements of the Japanese keiretsu model, which emphasizes integration, long-term relationships, and joint gain.

Such relationships are characterized by a high level of trust, mutual respect, open and efficient communication, shared risks and rewards, commitment to each other's success, and the ability to constructively deal with differences. Treat Suppliers as Partners

Martin Schneider

Our SuppliersOur suppliers are business partners who provide our system with materials, including ingredients, packaging and machinery, as well as goods and services. Our Company's Supplier Guiding Principles (SGP) communicate our values and expectations, emphasizing the importance of responsible environmental and workplace policies and practices.

Page 6: Managing your suppliers makes perfect sense

Critical business challenges

• Improve efficiency / reduce the costs

• Increase employee productivity

• Collaborate across employees, partners and suppliers

• Become more nimble and flexible

• Optimise business model and processes

• Improve customers service

• Obtain new customers

• Sell more to existing customers

• Keep in line with new technology

• Ensure that the correct skills are available

• Produce the best quality

Page 7: Managing your suppliers makes perfect sense

Selecting your suppliers

Suppliers

Technical compatibil

ity

Service Management Model

Quality measurem

ent

Cost to company

Flexibility to change

Innovation approach

Identify Assess Validat

e Award Monitor

Page 8: Managing your suppliers makes perfect sense

The Process

Request

for

Scope or Work

Supplier submits scope of work

Business reviews scope of work

Business Submits questions to

suppliers

Supplier responds to questions

Scope of Work is submitted for final

review

Proposal accepted or declined

On acceptance the contract is setup

outlining the terms and conditions

Supplier moved to supplier database

Approved Scope of WorkSupplier ContractService Level Agreement

Page 9: Managing your suppliers makes perfect sense

Project Management – Managing your suppliers

On approval of Scope of Work

Business Requirement

sAnalysis Design Development

Testing ImplementationOnline

Production

Agile Project Plan control

Project Plan control

• Ensure your suppliers are involved at every stage of the project

• Setup proper release management that is tied to financial billing and payment

• Hold regular status meetings with your suppliers• Track the project plan and address issues• Identify any impacts and raise change controls where

required• Hold regular audits on your supplier performance

Page 10: Managing your suppliers makes perfect sense

The results

By using a structured supplier management approach you will provide:

Better efficiency in project deployment and roadmap implementation.

Governance on project templates and process management

Improved/increased/enhanced customer satisfaction.

Enhanced effectiveness in delivering services.

Improved growth and development within your team.

A greater standing and competitive edge. within your industry

Opportunities to expand your companies services.

Increased risk assessment and expert management of mitigation strategies

Delivery of quality products

Ability to deliver multiply projects simultaneously