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Supplier strategy: definition & important aspects for buyers
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Supplier strategy in a nutshell:
A supplier strategy is a systematic approach to the selection, development and management of supplier relationships based on defined corporate objectives. It enables Purchasing to optimally align the supplier portfolio and effectively utilize synergies and savings potential.
Example: A car manufacturer reduces the number of its C-parts suppliers from 250 to 50 core suppliers within 18 months through a new supplier strategy, achieving cost savings of 15% while improving delivery quality by 30% at the same time.
Contents
What is a supplier strategy?
A supplier strategy is a structured concept that defines how a company interacts with its suppliers in order to achieve optimal procurement results. It encompasses supplier selection, development and maintenance of supplier relationships with the aim of reducing costs, improving quality and minimizing risk management. Through a targeted strategy, companies can increase their competitiveness and build sustainable partnerships.
Core elements of an effective supplier strategy
Importance of supplier strategy in purchasing
In modern purchasing, the supplier strategy is essential for the success of the procurement process. It makes it possible to manage cooperation with suppliers in a targeted manner and generate competitive advantages. With an effective strategy, buyers can reduce costs, promote innovation and improve the quality of purchased goods and services.
Supplier strategy: From traditional procurement to strategic supplier management
Building on the understanding of supplier strategy as an essential part of procurement, its practical importance in companies is becoming increasingly clear. In a globalized economy, it is essential to go beyond pure procurement and establish strategic partnerships with suppliers. This not only ensures security of supply, but also promotes innovation and competitive advantages. In order to meet these requirements, a change from traditional methods to modern approaches is necessary.
Old: Traditional procurement
Traditional approach: Traditional procurement focused mainly on short-term purchasing decisions with a focus on negotiation techniques and immediate availability. Suppliers were often selected solely on the basis of the cheapest offer, without in-depth analysis of their performance or long-term potential. Tools such as simple offer comparisons and manual ordering processes dominated everyday life. This approach often led to inconsistent quality, supply bottlenecks and a lack of innovation, as relationships with suppliers remained superficial and offered little room for collaboration.
New: Strategic Supplier Management
Strategic Supplier Management: The modern approach focuses on the strategic development and maintenance of supplier relationships. By using data analysis, supplier evaluation systemsand digital platforms, suppliers are selected and segmented according to their long-term value to the company. Collaborations are based on common goals, such as the development of innovative products or the optimization of supply chains. Aspects such as sustainability, risk management and global market trends are integrated. This leads to increased efficiencies, reduced costs and strengthens the company's competitive position.
Practical example: Electronics industry
An international electronics company has changed its supplier strategy from traditional procurement to strategic supplier management. By working closely with key suppliers, production cycles were shortened by 25% and the market launch of new products was accelerated. In addition, the joint development of components led to annual cost savings of over EUR 10 million. The improved relationships also enabled better coordinated demand planning, which reduced inventories by 15% and increased liquidity.
Conclusion on the supplier strategy
An effective supplier strategy is essential for the long-term success of a company. Through systematic segmentation, targeted relationship management and continuous performance monitoring, companies can optimize their procurement processes and generate competitive advantages. The balance between strategic partnerships and operational efficiency as well as the integration of modern trends such as sustainability and digitalization are particularly important. The key to success lies in the consistent implementation and regular adaptation of the strategy to changing market conditions.
