A quick overview and guideline to manage your suppliers effectively

1. Supplier Management
A guideline

2. Overview
As technology and skills advance companies both large and small are
appointing strategic suppliers to help them to develop and produce
their products
Successful product
delivery
Good
governance
Vested
interest
s
Strategic
partnership
s

3. Understanding the Product Life Cycle
Business
Roadmap for
calendar year
It begins with defining the
company’s vision and
mission
Planning the
Product
Roadmap
Defining the
concept
Defining the business
rules and product
specifications
Developing and
Launching the
Product
Develop the Product
Project Initiation Project Planning Project Execution Project Closeout
Launch the final product
End of Product Lifecycle
Conduct Analysis and
Research
Findings are documented
Document is reviewed by
nominated stakeholders
Stakeholders approve
and sign off concept
Hold workshops to define
the business rules and
userability of the product
to be launched
Findings are documented
Document is reviewed by
nominated stakeholders
The business rules and product
specifications are approved by
the Business Owners and
nominated stakeholders
Document distributed to
Development team
Identify concept
for production
Team is appointed
to proceed with
the marketing plan
TIME
S
A
L
E
S
Introductory
stage
Growth
Stage
Maturity
Stage
Decline
Stage
Defining the
Marketing Plan
Concept is aligned to the
marketing strategy and
financial planning for
calendar year
Findings are documented
Document is reviewed by
nominated stakeholders
The Marketing strategy and financial
planning for the concept are approved
by the Business Owners and
nominated stakeholders
Business rules and
product specifications
commence
The objectives will outline
· Who we are as a company
· What do we want to achieve
· How do we want to achieve this
· The timeline to meet these objectives
These objectives
are communicated
to the business
units
Teams
Managers
Customers
Results
in
Product Life Cycle

4. Companies and businesses today
Corporations and businesses today have a purpose to meet the
stakeholders needs by producing goods and services to improve the
lives of users; by providing jobs and enhancing the workers’ quality
of life. This can be managed by developing a strong network of
suppliers and business partners. Ultimately this provides resources
for valid improvements, great innovations and definite returns to
the business. At the end this equals that the business benefits
have been produced and realised.
The supply management organization must
create an atmosphere of collaboration and
provide a comfortable meeting area where
cross-functional teams can meet and work
together towards success.

5. Suppliers today
 To achieve greater profitability and gain a competitive edge, many more
companies are partnering with their suppliers, borrowing elements of the
Japanese keiretsu model, which emphasizes integration, long-term
relationships, and joint gain.
 Such relationships are characterized by a high level of trust, mutual
respect, open and efficient communication, shared risks and rewards,
commitment to each other's success, and the ability to constructively deal
with differences.
Treat Suppliers as Partners
Martin Schneider
Our Suppliers
Our suppliers are business partners who provide
our system with materials, including ingredients,
packaging and machinery, as well as goods and
services. Our Company's Supplier Guiding
Principles (SGP) communicate our values and
expectations, emphasizing the importance of
responsible environmental and workplace
policies and practices.

6. Critical business challenges
• Improve efficiency / reduce the costs
• Increase employee productivity
• Collaborate across employees, partners and suppliers
• Become more nimble and flexible
• Optimise business model and processes
• Improve customers service
• Obtain new customers
• Sell more to existing customers
• Keep in line with new technology
• Ensure that the correct skills are available
• Produce the best quality

7. Selecting your suppliers
Supplier
s
Technical
compatibilit
y
Service
Manageme
nt Model
Quality
measureme
nt
Cost to
company
Flexibility to
change
Innovation
approach
Identify Assess Validate Award Monitor

8. The Process
Request
for
Scope or Work
Supplier submits
scope of work
Business reviews
scope of work
Business Submits
questions to
suppliers
Supplier responds to
questions
Scope of Work is
submitted for final
review
Proposal accepted or
declined
On acceptance the
contract is setup
outlining the terms
and conditions
Supplier moved to
supplier database
Approved Scope of Work
Supplier Contract
Service Level Agreement

9. Project Management – Managing your suppliers
On approval of Scope of Work
Business
Requirements
Analysis Design Development
TestingImplementation
Online
Production
Agile Project Plan control
Project Plan control
• Ensure your suppliers are involved at every stage of the project
• Setup proper release management that is tied to financial billing
and payment
• Hold regular status meetings with your suppliers
• Track the project plan and address issues
• Identify any impacts and raise change controls where required
• Hold regular audits on your supplier performance

10. The results
By using a structured supplier management approach you will
provide:
 Better efficiency in project deployment and roadmap implementation.
 Governance on project templates and process management
 Improved/increased/enhanced customer satisfaction.
 Enhanced effectiveness in delivering services.
 Improved growth and development within your team.
 A greater standing and competitive edge. within your industry
 Opportunities to expand your companies services.
 Increased risk assessment and expert management of mitigation strategies
 Delivery of quality products
 Ability to deliver multiply projects simultaneously