SuppecoSheldon Mydat CEO Sheldon Mydat chats to SmartProcurement about the intrinsic value of building solid relationships with suppliers to extract real value for your business, and how Suppeco can help.

Here’s the thing: the relationships that you structure between your customers, your suppliers, your teams, your people – that’s where the real value lies. In understanding, in knowledge and sharing, in
collaboration, in exploring and in opportunity. We have historically attempted to measure the value
via contracts. But contracts (whilst clearly important) are largely predefined, pre-negotiated – and are therefore a finite resource in terms of driving value. True strategic value lives on the relationship playing field and much of that success depends on how well your teams play.

The bad news – we could well be tunnelling towards a recession. Your contracts and their value will naturally decrease. And recession or otherwise, companies have billions locked into rigid contracts. Unless you’re growing, natural depreciation and attrition mean you’re regressing.

92% percent of businesses don’t have close relationships with their suppliers
Harvard Business Review

Traditional SRM
Covid catapulted relationship management to prominence, at the same time exposing SRM programmes for their failures. From short-term ROI, insufficient investment and weak KPIs to little or no collaboration and lack of structure, measurability, adaptability and resilience across entire ecosystems; the responsibility for these programmes has traditionally sat with procurement.
Ironically, procurement has often stood alone like an island but was rapidly ushered back into the fold in early 2020 at the start of the Covid crisis.

Untapped Value
There is still a significant albeit not insurmountable challenge. Relationships aren’t drafted into contracts. They’re difficult to quantify and measure as they naturally lack structure. Quantifying the
unseen value has until now been largely impossible. Historically this would often see SRM programmes set to fail, as CPOs demanded clarity more readily found in contract performance and cost-based approaches to savings and value, with little or no confidence in the promise of longer-term strategic value from something that was largely unquantifiable.

Over the course of the next decade, companies could expect disruptions to erase half a years
worth of profits or more
McKinsey & Co

Suppeco Collaborative Relationships
Your stakeholders, customers, and suppliers operate within your contracts but the creative value that they develop, whether diverse collaboration, innovation, thought leadership, shared R&D, collaborative adaptability and resilience – all occurs outside of those contracts; and all represents a lucrative and repeatable approach to generating value.

Business relationships just like any other relationship, thrive on structure, otherwise they become dilated and dysfunctional. Just as KPIs and business barometers rely on those structures otherwise they too become ineffective.

Bringing all this structured relationship data together can unlock an infinite array of opportunity that can truly elevate an organisation’s capability to exploit hidden relationship value, promoting innovation and scalable growth.

Frictionless Omnichannel Efficiency
At Suppeco we’ve created an unrivalled frictionless environment for collaboration at scale, across distributed multi-party teams, communities, and the supply chain.

Organisations spend up to 60% of total revenues on external suppliers. But up to a third of the negotiated value is lost over term due to poor relationship management.
KPMG

4 Pillars. Suppeco Infrastructure
Structure above the contract line – within the relationship space – the area that was previously associated with untapped opportunity and value leakage, that lacked measurability; is now manageable, structured & supports repeatable, scalable & substantive growth.

Empowering Action with Actionable Visibility
Suppeco offers end-to-end visibility of stakeholder contribution anywhere throughout the value chain at the project subcategory, product or service line level. The platform tracks overriding standards, attained levels of service and compliance, performance metrics, as well as granting full visibility on any steps of remedial or service improvement activity taken. Suppeco also supports documentation and data such as KPI’s and trending patterns all in one place, empowering players (supply chain employees) to take informed action.

A Zero Friction Environment that Removes Barriers and Nurtures Collaboration
Disparate systems and in-house computing have long since created silos of communication, limiting the sharing of information and impeding progress on improvement initiatives or value recognition.

No longer. Suppeco removes those silos and facilitates improved performance, bringing the data directly to the users who need it, removing the barriers to entry and communication, and promoting participation through every level of the supply chain or customer-supplier ecosystem.

Dynamic data insights from digital collaborative solutions such as Suppeco been shown to drive
an additional 3 – 10% incremental savings annually
McKinsey & Co

Suppeco is accessible to anyone, anywhere globally in seconds, whether they be suppliers and their teams known to the supply chain or guest collaborators, subject to customer controls designed to protect the flow of sensitive data.
Automated workflows support never missing a deadlines, KPIs, compliance, or audit inspections, as well as never having to go looking for the data. Instead, the data follows the users.

And Furthermore…
The increased transparency and open communication that Suppeco enables helps build trust, supports continuous improvement and growth, and drives innovation- the building blocks of long-term partnerships and a vibrant supplier ecosystem geared towards driving better outcomes for all.

Companies who are focused on short-term cost reduction strategies often fail to leverage supplier capabilities to their advantage.
Gartner

By Sheldon Mydat, Procurement & Supplier Relationship Evangelist & Speaker, CEO at Suppeco (International Business Excellence Winner) Making value and social compliance measurable for collaborative customers & suppliers, Suppeco was born from Sheldon’s frustration of the current ‘normal’.

He is an industry leader and well-respected expert in the field of SRM, having led successful supplier transformation programmes for high profile organisations such as the Metropolitan Police, Royal Mail Group, T-Systems, Fujitsu, BAA, BAT, BAE Systems, GFK, Lloyds Banking Group.