Supplier Relationship Management: The Future – Michel Philippart
August 26, 2020
Alex Basso
1 minute

About Michel Philippart:

Michel is a world wide known expert and thought leader on strategic supplier relationship management. He has over 30+ years of experience in the space having worked at McKinsey, Booz Allen Hamilton, PepsiCo Frito-Lay and GSK. Michel is currently a Professor of Supply Strategies at EDHEC Business School.

Procurement leaders, and corporate leaders, the two must be aligned, need to understand the change in paradigm that the information age brings upon us: the move to a firm centric business model to a platform centric one. Successful corporations will more and more rely on collaborations outside their core assets, their core expertise. So, projects across firm boundaries will become the norm. This will require changes in the way infrastructures are managed, from monolithic firm systems to independently managed, cloud based, polymorphic systems that can be tailored to answer the specific requirements of projects that can take many shapes. 

It will also require a change in the governance and the culture. Governance will include policies and objectives, monitoring and feedback, understanding of diverging interest and mechanism to reconciliate them, clarification of roles and responsibilities for initiative success and long-term sustainability and transparency of deployment and accountability. The traditional governance of forms is pyramidal, with the interests of the shareholders at the top, and the internal constituencies, such as labour at the bottom. The platform governance differs significantly as it is linking communities without the traditional capitalistic allegiances of traditional corporations. Corporate culture, shared and promoted within the firm’s environment, includes the beliefs, norms and values widely shared and strongly held in the organization. It will condition the way stakeholders interact to cope with problems of external adaptation and internal integration. 

Implementing extended enterprise and platform linked networks management tools require significant efforts. Many digital change initiatives, loosely coordinated, insufficiently considering the governance and culture change will fail to deliver on all their promises. Successful transition relies on a step by step approach.

Check SRM: The Past & SRM: The Present if you have missed it.

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