- Know the business strategy; understanding what the business wants to do and how the business wants to do it.
- Understand who and establish who has the authority to do what within the business
- Understanding what the business’ objectives are around the capital,
- Understanding the cost of capital
- Ensuring that your supplier relationship can actually deliver on those business requirements
- Understanding the principles that you want to engage in the market.
- Are you looking for a more collaborative approach?
- Are you looking for strategic partnerships?
- Or simply wanted them to give you something with ready access (ex: travel, preferred airline over another)
“I think the best way to explain a strategic supplier, is a supplier that you have a relationship where you both invest in each other. So a strategic supplier is willing to contribute time and resources. . . to ensure that you can help you achieve your goals because they know that there’s going to be a long-term return there for them.”
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Editor’s Note: This post was originally published in February 2020, under the title “Procurement Tips from Trent” in Logistics Bureau’s website.