Supplier Relationship Management

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Course duration: 2 Days

Course running order

· The importance of relationship management in supply chains

· How procurement adds value in the supply chain

o Supply positioning and procurement targeting
o Developing contract strategies – leverage, routine and bottleneck products and sourcing strategies
o Using Product / service portfolio analysis to decide on the relationship style

· Structuring contracts around relationship strategy

o Essential contractual structures
o Day to day management structure
o HSE and Site Access rules
o Key Personnel
o Meetings and administration
o Bill approval and payment
o Dispute and conflict regimes

· Relationship management in contracts

o Using Balanced Scorecard approach to relationship management
o What are balanced scorecards?
o How are they used in major contracts?
o The 360 degree scorecard
o Incentivisation of contracts
o Setting KPI’s for continuous improvement in performance
o The learning curve
o Sharing productivity gains with suppliers
o Working together to avoid waste – value engineering, value analysis

Case study
Delegates will be asked to design a balanced scorecard for use in their business

· Personal skills in relationship management

o A skills inventory – trust motivation leadership assertiveness
o What kind of manager are you?

Delegates will be asked to complete two light touch psychometrics designed to identify their approach to managing supplier relationships. Feedback will centre on the strengths weaknesses and possible corrective approaches to developing a stringer more winning relationship management style

· Managing the relationship

o Approaches to managing Long-term supply relationships
o Process and task – the importance of a rigorous resourced process for driving successful supplier relationships
o Using tiered relationship management to improve reliability and commitment in the supply chain

Course objectives

To develop understanding of current best practice in supplier relationship management within an applied learning framework that maximise the practical. The course will explore the impact of relationship management on supplier performance its vital contribution to the smooth and efficient running of long term supply contracts for both goods and services

Who should attend?

Delegates from contract rich environments with responsibility for setting up and managing major contracts.

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