ACTIVATE Supplier RELATIONSHIPS
In the average business, supplier costs make up over 70% of total organisational costs. Yet visibility into those supplier relationships is often poor, leaving companies open to unnecessary risks, sub-standard performance, and leaving value on the table. Supplier and contract management is a critical component of any successful business strategy to ensure businesses get what they pay for and make every relationship as fruitful as possible. This is why CPOs are increasingly turning Supplier Management into one of the significant trends of this decade.
“Effective contract management can deliver a wealth of benefits to organisations – and Is increasingly important In tight, volatile, and cost sensitive markets”
reduce risk, up Performance, increase value
Studies have shown that the value achieved upon the signature of a contract quickly wastes away if that contract or relationship is not managed. Sometimes, this is down to performance levels not being met, sometimes down to scope creep, or even down to supplier quality or risk credentials lapsing during the contract term, amongst many other reasons. Conversely, active supplier management can lead to increased financial and performance value being achieved. At Proxima, we aim to activate your supplier relationships, designing and implementing supplier and contract management frameworks.
- Consider supplier importance and risk, segmenting and calibrating relationships accordingly
- Align in-life supplier management with risk, performance, and value considerations
- Quickly build or refresh supplier programmes using best-in-class tools and templates.
The Proxima’s approach to S&CM
Our approach takes many forms, depending on your specific requirements. We offer end-to-end supplier management programme development, functional programme development, capability development, and more. Each is designed to set you up to ensure that suppliers continue to meet your expectations and deliver value over the long term through:
- Identifying improvement opportunities within your existing landscape
- Enhancing with best practice, innovative solutions, and a future-focused approach
- Supporting implementation to ensure risks are mitigated, and resilience is realised.
