As sourcing relationships become more complex and strategic in nature, supply chain professionals need new insights and more sophisticated supplier development and management tools.
Alacris Consulting has developed a rigorous methodology for supplier development and management, as part of our Category Management Framework. This process captures the benefits of strategic sourcing, including optimizing total cost and supplier performance, increasing collaboration and innovation, and ensuring continuity of supply for key spend categories.The Business value of Supplier relationships
Alacris Consulting’s governance and compliance services help clients implement measures and controls to increase the business value of supplier relationships, meet business objectives, and realize savings goals. This is achieved through integrated activities, including:
- Alignment of critical contractual terms and prioritization of sourcing objectives
- Identification of key value drivers that impact these objectives
- Creation and institutionalization of supplier performance measures and scorecards
- Creation and institutionalization of corporate supply chain and procurement dashboards and metrics
- Monitor and control of fulfillment of contractual pricing, terms and conditions, and services consumption
- Problem escalation and resolution
- Use of governance levers such as contractual obligations and policies
- Nurturing and expansion of relationships
Governance and compliance measures are critical in today’s risk-fraught supply chain. Negotiated savings do not necessarily translate to realized savings, and businesses lose billions annually through ineffective contract management and poor compliance.