Supplier management, and its elements of SIM, Risk Mgmt, SRM, and Supply Sustainability become increasingly important, given changes in today's global business environment.
This article discusses how companies can tap the value of supplier management for enhanced competitiveness, thereby focusing on value creation rather than cost cutting.
- To survive and thrive in today's global economy, companies need to rethink their approach to coping with their upstream supply chain, reflected in a shift from cost driven-focused, transactional efforts, to value-driven, collaborative efforts.
- Supplier management does not mean applying dispersed practices indiscriminately, rather its a holistic endeavor.
- Supplier management is not restricted to the external interface of the company, rather it's an inherently cross-functional effort that involves all relevant internal stakeholders as well.