Transforming Supplier Relationships To Improve Performance
The typical organization has more than 50% of its operational costs tied up in its supply chain. That means half of its business lies largely outside of its control, subject to pricing battles, contract negotiations, currency fluctuations, labor disputes, competitive maneuvering and many other issues. Yet it’s precisely in the supplier base where manufacturers have a powerful and untapped solution to improve their short- and long-term results. Rather than simply a cost center that must be tightly managed, suppliers can actually represent a strategic extension of a manufacturer’s organization – bringing fresh resources to bear on product design and collaborating to make production and delivery more efficient. At CGN, we help our clients transform key supplier relationships from merely transactional to collaborative, producing immediate, significant and long-term business value. We help create strategic alignment with key suppliers and establish collaborative solutions to lower their operating costs, advance quality and innovation, establish joint product development, increase their speed to market, strengthen their profitability and improve their ability to compete in a challenging global market.