Strategic suppliers provide critical products and services to their clients. In a production environment, if the supply chain for critical components breaks down and delivery dates are missed, the production line may stop. If an IT supplier fails to deliver key system development projects on time, the implications for the business can be catastrophic. With the growth of outsourcing, where entire business functions are delegated to a supplier, the dependency on them is further increased; with offshoring there are additional complexities. An organization's ability to manage its strategic supplier base effectively is central to its performance, competitiveness, and future success.
This book provides practical guidance on the knowledge and skills required for managers whose role involves the management of the relationship with and the performance of strategically important suppliers. Although the focus is on the management of suppliers during the live relationship, the approach is holistic as the entire supplier management process is discussed in detail using a Supplier Lifecycle model. There are five stages—identify the business requirement, research the supply market, carry out procurement and supplier selection, integrate and transition to the new supplier and their services, and manage the delivery of the products and services for the contracted period.