Key Supplier Review Meetings

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    • #292274

      We’re looking at potentially re-architecting our bi-annual key supplier review meetings and want to understand leading practices used by large enterprises. In our definition key suppliers are critical for service delivery and collectively account for roughly 80% of our external spend. At a high level, the intent of our key supplier summit is to bring together senior executives for an update on the business environment, applicable organizational realignment, and to gather insight around innovation and business value opportunities. 

      1.Have you received value from key supplier summits (as opposed to individual 1:1 supplier meetings)?

      2.What outcomes indicate success of these meetings?

      3.How do you get key suppliers to embrace and actively participate in summit meetings?

      4.How do you incentivize key suppliers to collaborate with the customer’s business interests in mind?

      5.What is a typical agenda for your key supplier summit meetings?

      6.What are focus areas for the meetings?

      7.Who is involved? How do suppliers merit attendance?

      8.How do you get suppliers to move past IP and proprietary data concerns to assure robust dialogue?

      9.How frequently do these meetings occur?

      10.Do you conduct these meetings virtually or in person? If virtual, how do you assure active engagement by participants?

      11.What other leading practices can you share regarding this subject?

       

    • #293813

      The answer to all of these questions would require someone to write a company-wide contract administration and supplier management program for them.  If they are just having the meeting and that’s it then they are likely going to waste time for many people.  These meetings only work when they are part of an overall company-wide supplier management and contract administration program.  I have been involved with numerous supplier recognition meetings.  They are tough to do well, but they can be a great tool.

       

      1.Have you received value from key supplier summits (as opposed to individual 1:1 supplier meetings)?  Yes

      2.What outcomes indicate success of these meetings?  It was good for both sides – you decide and define success upfront.  Survey suppliers and internal attendees afterwards.

      3.How do you get key suppliers to embrace and actively participate in summit meetings?  They will come because you are a customer.  Some of your reps actually get bonuses for these types of recognitions. 

      4.How do you incentivize key suppliers to collaborate with the customer’s business interests in mind?  Establish special partnership agreements with key suppliers.

      5.What is a typical agenda for your key supplier summit meetings?  Very company dependent – must have senior leaders involved (CEO and his direct reports)

      6.What are focus areas for the meetings?  You can have themes linked to your company’s goals

      7.Who is involved? How do suppliers merit attendance?  You should have defined criteria that’s tracked over the year

      8.How do you get suppliers to move past IP and proprietary data concerns to assure robust dialogue?  Create NDA’s for the discussions – have legal advise

      9.How frequently do these meetings occur?  Tough to do more than once a year – meet with key suppliers more often – part of an overall program

      10.Do you conduct these meetings virtually or in person? If virtual, how do you assure active engagement by participants?  In person is best – plenty of notice to attendees (at least 90 days)

      11.What other leading practices can you share regarding this subject? Don’t announce winners at the meeting – all attendees should be winners in some category – send out invite to senior leaders from senior leaders.

       

    • #293814

       

      1.Have you received value from key supplier summits (as opposed to individual 1:1 supplier meetings)?

      ~ Use Both: Bi-Annually strategic/tactical, Monthly/Quarterly tactical/operational

      2.What outcomes indicate success of these meetings?

      ~ Relationship building and a limited number of focused performance indicators (KPI) 

      3.How do you get key suppliers to embrace and actively participate in summit meetings?

      ~ Market competition and financial incentives.

      4.How do you incentivize key suppliers to collaborate with the customer’s business interests in mind?

      ~ Create win-win scenarios.

      5.What is a typical agenda for your key supplier summit meetings?

      ~ Organization Charters; KPI, Opportunities/Issues (logged)

      6.What are focus areas for the meetings?

      ~ Depends upon supplier provided good or service. 

      ~ See previous bullet

      ~ Market Opportunities/Issues

      7.Who is involved? How do suppliers merit attendance?

      ~ Annually: Leadership

      ~ B-Annually/Quarterly: Key supplier reps, sourcing reps and internal stakeholders

      ~ Monthly: Supplier leads, Procurement leads

      8.How do you get suppliers to move past IP and proprietary data concerns to assure robust dialogue?

      ~ Non-Disclosure Agreements/ Confidentiality Agreements, etc., endorsed by General Counsel. 

      ~ Buyer  Seller Ethic: Discuss, have a “simple” document of expectations.

      9.How frequently do these meetings occur?

      ~ See notes above.

      10.Do you conduct these meetings virtually or in person? If virtual, how do you assure active engagement by participants?

      ~ Both with strategic meetings in person.

      11.What other leading practices can you share regarding this subject?

      ~ As an alternative method of creating a win-win scenario that is not focused solely on better pricing,  find the White Paper and/or Book along the line of “Managing the White Space” to understand proactive practices to manage the business and avoid the need focus on price (which does not always equal cost).

       

       

    • #293815

      Best practice is to have a formal SRM program in place. Answers to the questions asked are content of the program. 

    • #293816

       

      1.Have you received value from key supplier summits (as opposed to individual 1:1 supplier meetings)?  Yes

      2.What outcomes indicate success of these meetings?  Suppliers say they understand our business better than any other client.    We feel like we get customer of choice recognition internally because executives have met and heard from our executives. 

      3.How do you get key suppliers to embrace and actively participate in summit meetings?  Invited them – told them the agenda and who would be presenting (founder, CEO, CMO and CIO).    We had to turn people away.  

      4.How do you incentivize key suppliers to collaborate with the customer’s business interests in mind?  Risk reward—plus supplier awards

      5.What is a typical agenda for your key supplier summit meetings?  MORNING:  CEO – strategy (typically a repeat from the investor day)

      Each business GM (or a rep) covers BU strategies.  CIO and CMO typically share their focus areas.    AFTERNOON:   Guest speaker on the focus for the day—see #11 below on the topic last year.  

      We also have a product gallery.   Some suppliers focus on only one BU so this gives the overview of what the other BU’s are doing.     End day with a cocktail hour (with execs in attendance).   

      6.What are focus areas for the meetings?   Typically align with our internal strategy—one might be our move from desktop to digital and how it is transforming our business.    

      7.Who is involved? How do suppliers merit attendance?    We typically invite our top 50 or so suppliers.    Attendees are sr exec + key account manager.   We also have the internal relationship manager and try to get as many sr. Exec sponsors to attend.  

      8.How do you get suppliers to move past IP and proprietary data concerns to assure robust dialogue?   We only share what is public.

      9.How frequently do these meetings occur? Every other year—more or less.   We try every year but have had budget challenges in some years.  

      10.Do you conduct these meetings virtually or in person? If virtual, how do you assure active engagement by participants?   Never have done virtual.   All are in person

      11.What other leading practices can you share regarding this subject?   Teach them something—for example.  Our leader of innovation conducted an exercise last year on our Design 4 Delight methodology—what process we use to identify what resonates with customers.    

       

    • #293817

      We conducted key supplier summits several years in a row.  We discontinued last year because we struggled with the resource time to plan against the value they provided.  

    • #293818

       

      1.Key supplier summits were two-fold. 1)Reverse engineering for cost reduction, material substitution, and product improvement project, 2) award suppliers with excellent contribution and collaboration annually

      2.Success indicators were that we had piles of expert ideas on how we could start engineering or seeing products from diverse perspectives. Suppliers performed well and acknowledgement of those suppliers translated our excellence in the products we manufactured, supplier management, and growth of the suppliers and us. Many suppliers worked to be the award recipient, in which their dedication, collaboration, and ingenuity.

      3.The meeting had significant meaning for many suppliers for the reasons listed in No.2, therefore, it was an honor for suppliers to be invited.

      4.The incentive was also explained in No.2 and 3.

      5.Explain how our business grew and sharing the business growth with suppliers, invited city/State officials, ceremonial agenda for major contributors from supplier pool.

      6.Continuous improvement in business relationship, collaboration of engineering/Purchasing functions, future business goal based on the market trend.

      7.Suppliers that contributed in product improvement, supply-chain improvement, engineering excellence, and those who had highest Quality ratings in recent years

      8.Building trust through and through – partnership thinking rather than supplier/customer relationship, problem solving together and remove the perception that we are customer vs. their being supplier

      9.Once a year for special project supplier summit for engineering and awarding each

      10.In person only either on site in our manufacturing facility or rented a larger arena depending on the nature of the event and guests

      11.Elaborate and be specific about why you are holding the summit and evaluate results for the next occasion for improvement and think through why you hold it again, share the responsibility with the guests so that they will be more proactive and creative. Holding the event itself is a process for improvement

       

    • #293825

       

      1.Have you received value from key supplier summits (as opposed to individual 1:1 supplier meetings)?

      Yes, we host multiple collective supplier ‘council’ meetings that consists of 3-6 suppliers. Brings together stakeholders and creates forum to provide transparency to business goals and understand misalignment in the supply chain

      2.What outcomes indicate success of these meetings?

      Success is determined by mutually beneficial actions leading to desired outcomes (e.g., increased revenue, co-marketing planning, removal of barriers, executive alignment, etc)

      3.How do you get key suppliers to embrace and actively participate in summit meetings?

      Ours our incentivized by retaining and prospect of growing revenue with our firm, as well as driving out waste in the supply chain

      4.How do you incentivize key suppliers to collaborate with the customer’s business interests in mind?

      We clearly define roles and expectations and set guidelines and meeting goals. Try to align suppliers goals with those of our customers/stakeholders

      5.What is a typical agenda for your key supplier summit meetings?

      Market trends, business updates, strategic planning, solutioning for a common issue

      6.What are focus areas for the meetings?

      Allowing venue for supplier(s) to advise us what we may be doing that is conflicting with achievement of overall goals

      7.Who is involved? How do suppliers merit attendance?

      Typically 2 reps per supplier (Executive rep + day to day SPOC)

      8.How do you get suppliers to move past IP and proprietary data concerns to assure robust dialogue?

      We do not expect or require the need to divulge proprietary info amongst competitors. We’ve experienced if meetings/relationship are built on foundation of trust and collaboration in pursuit of mutual and aligned interest, the dialogue becomes very open and robust

      9.How frequently do these meetings occur?

      We manage semi annually

      10.Do you conduct these meetings virtually or in person? If virtual, how do you assure active engagement by participants?

      In person

      11.What other leading practices can you share regarding this subject?

      Aligning interests and creating (organizing) commonality amongst the participants is important to ensure valuable content and ability to drive actionable take-aways. E.g., key suppliers in a category (competitors) or suppliers who support a common process/program 

       

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