“Supplier Collaboration and Innovation (SC&I) is an enterprise approach focused on driving business speed and growth through managing the extended innovation network.”
The definition above follows our train of thought around the next big opportunity that awaits, not only procurement, but the organisation it serves.
Procurement has built a strong reputation on delivering compliance and cost savings, but the next step in the evolution of the function is to start contributing towards the top-line revenue growth of our business.
McKinsey suggests that 60-80% of the all the money businesses spend is spent exclusively with suppliers. Supplier Collaboration & Innovation is about ensuring that this spend is optimised and is delivering the maximum possible returns.
What does Successful Collaboration & Innovation look like?
- Creating strategic partnerships with key suppliers to align them with your organisation’s objectives and challenges and creating an environment where the two businesses can jointly solve problems.
- Understanding and executing on the opportunities that lie in your extended value chain.
- Fostering an environment where an organisation and its suppliers can not only identify innovation opportunities but can create a path that sees that these initiatives are quickly implemented in the business.
- Developing supplier capabilities over the long term and ensuring your suppliers are growing and will be able to support the growth of your business into the future.