Insights

Supplier performance measures are a tool to determine whether your supplier is doing their work as expected. What is expected of the supplier should be as described in the supply contract or statement of work, specification, service level agreement or KPIs – or a mixture of some of these. There are many tools to assist in measurement of supplier performance. Some are paper-based checklists, many... Read more
Most supplier relationships start with good intentions on all sides for a productive engagement that will deliver good outcomes. Yet some supplier relationships, whether contracted formally or not, do not proceed successfully. Difficulties regarding performance, commercial or other issues, can start before the work has even begun.  Or they may emerge after many years of effective partnership.... Read more
As part of a recent consulting assignment, ADR were reviewing the average length of the supplier relationships with our client’s organization.  The organization had recently introduced a supplier relationship management (SRM) program.  The program used a governance framework that detailed the type and frequency of review meetings and performance evaluation based on supplier criticality.  ... Read more
Before embarking on supplier relationship initiatives, most organizations try to segment their key suppliers. This helps to understand the type of relationships that currently exist, and what relationships would be most effective in delivering value. During our training courses, we use ADR’s Portfolio Analysis model to support this analysis. We like this tool because rather than assigning... Read more
During the start of the year, corporate teams often approach ADR to plan their training program for the year. Our initial discussions are typically around the objectives, in terms of what the organization hopes to achieve after the learning has been applied. This can sometimes leave learners asking “why are we here?”. They don’t understand why they have been extracted from a busy work schedule to... Read more
Christmas is a time to do something for other people. Maybe you are looking in on an elderly neighbour or volunteering at a homeless shelter. Individual giving is worthy, as are collective efforts by organizations (and the procurement people that represent them). Instead of just donating or raffling our suppliers’ Christmas gifts for charity, what if Procurement professionals took a more... Read more
There is much talk currently of circular procurement as an important element of the circular economy. The circular economy is a resource productivity concept. Manufacturers and consumers aim to keep materials useful at the end of their life, for example through repair and re-use in new products. Circular procurement supports this. It is relevant to production purchases, where the whole-life of... Read more
In part two of the article on Demand Management, Peter Hunt will discuss the catalysts and some of the key tools to support Demand Management. WHAT ARE THE CATALYSTS? This will depend on the stage of the process as well as the organizations' business environment / priorities. During the analysis and planning phase of the process, options analysis and challenge is intended as a step for a cross-... Read more
In this two part article Peter Hunt describes Demand Management as a source of value improvement.  In part 1 we cover the background, context and foundation for Demand Management and in part two we will consider the catalysts and key tools. Part 1 - Background Demand Management is not a new concept.  Its origins lie in fiscal management and economic theory wherein demand and supply can be... Read more
Procurement professionals are often supported by their colleagues in the finance department when it comes to decisions over buying in different currencies. However, when creating category strategies and managing supplier relationships, it is essential that sourcing people address the implications of currency on their decision-making. Why is currency such a key element of the category strategy... Read more

Pages