Summary of "7 Tips for Successful Supplier Relationship Management | CIPS"

Main Financial Strategies and Business Trends:

Segmentation Criteria: Broadening the criteria used for supplier segmentation to include factors like supply chain volatility, stakeholder input, and impact on brand success.
Value Outcomes: Establishing clear Value Outcomes that organizations aim to achieve from supplier relationships, categorized into protective, productive, and progressive values.
Behavioral Assessment: Incorporating evaluations of individuals representing suppliers to ensure the right team dynamics and capabilities are in place for effective collaboration.
Contract Management: Emphasizing the importance of shared understanding and alignment on contract obligations to foster trust and effective performance management.
Innovation Framework: Developing structured approaches to capture and facilitate discussions around innovation in supplier relationships, ensuring alignment with organizational goals.

Step-by-Step Guide (Tips):

Tip 1: Broaden segmentation criteria to include factors beyond traditional metrics, such as volatility and stakeholder impact.
Tip 2: Conduct segmentation early in the category management process, ideally during strategy development.
Tip 3: Define Value Outcomes comprehensively, considering protective, productive, and progressive aspects.
Tip 4: Evaluate the personnel involved in supplier relationships using behavioral assessments to ensure compatibility and effectiveness.
Tip 5: Ensure shared understanding and alignment on contract obligations among all parties involved.
Tip 6: Use Value Outcomes to define performance metrics, balancing leading and lagging indicators.
Tip 7: Establish a structured framework for managing innovation discussions and tracking outcomes related to supplier contributions.

Presenters/Sources:

Sharon Morris: General Manager of CIPS Australia and New Zealand
Craig Johnston: Presenter with over 25 years of experience in procurement, previously involved in developing SRM frameworks for organizations.

The webinar emphasizes the importance of SRM as a strategic function that can significantly impact organizational success, particularly in volatile markets and challenging environments.