Procurement professionals today are interested in more than just getting the lowest price for the products and services they need. They want a supplier that provides innovative solutions and drives the overall growth of the business through a strategic partnership.
Partners that Drive Strategy
If you’re no longer looking solely at the bottom line, how can you choose the right supplier? Finding partners that offer diversified solutions and who invest in expanding their core competencies is a good start. Choosing a company that has a variety of offerings allows you to reduce redundancies, drive focus on innovation and continue to bring cost savings.
Working with a supplier that provides a comprehensive array of solutions is a great first step, but without a strategy to implement these solutions, a supplier relationship can fail to achieve goals. A provider who is an expert in their field should evaluate your needs with an end goal in mind and help you develop a strategy to achieve it.
More than Traditional Sourcing
Traditional sourcing, which focuses mostly on reducing prices, limits the scope of what you can expect a supplier to do. Opportunities to accomplish more with a supplier are limited if you don’t understand the full scope of what they are capable of providing. Strategic sourcing focuses on suppliers as true partners who can assist in taking your business to the next level.
Group purchasing organizations (GPO) focus on understanding how to find strategic partners that will provide their diverse members with the most value. They do this by focusing on what is going on in each industry and working with suppliers dedicated to quality partnerships and providing varied services. They can then create agreements that focus on driving those partnerships through supplier relationship management and business relationship plans. Obtaining insight from their other members also allows them to provide additional information that a single organization might not have.
Achieving Strategic Partnerships with Corporate United
Corporate United takes the traditional role of a GPO to the next level by providing the added benefit of internal category management. Our category managers improve supplier relationships and actively meet at an executive level to understand what is going on with our suppliers’ businesses. We provide better guidance for our members by knowing where our suppliers are the most successful and recognized. We’re able to evaluate these suppliers often to ensure that they are providing our members the most value possible. We like to call it being a modern GPO.
Find out how Corporate United can be your best tool for creating strategic sourcing partnerships and contact us today.