Unlocking value through strategic supplier management
Optimize, design, and implement supplier management programs that drive innovation, value, and better risk management.
As supply chains grow more complex and the demand for innovation, sustainability, and risk mitigation increases, the need for effective supplier management has never been more critical. Failure to optimize supplier relationships can lead to significant value erosion, missed opportunities, and exposure to various risks. However, with the right strategies and expertise, organizations can unlock the hidden potential within their supplier base and drive sustainable growth.
Unlock the power of strategic supplier management with KPMG. Our leading suite of services, delivered by a global team of over 3,000 procurement and supplier management professionals, empowers organizations to increase supplier value, drive innovation, mitigate risks, and achieve sustainable growth. With an established track record of delivering value to clients, KPMG is your trusted service provider in transforming supplier relationships and navigating the complexities of today’s business landscape.
Increase business value with strategic supplier management
The importance of supplier management
In today’s competitive business landscape, organizations are increasingly recognizing the importance of effective supplier management (SM) as a key driver of innovation, value creation, and risk mitigation. SM plays a crucial role throughout the supplier lifecycle, generating returns across both direct and indirect spend areas. By fostering strong supplier relationships, your company can unlock significant opportunities and benefits.
Unlocking value and mitigating risks
One of the primary goals of SM is to prevent value erosion after contracts are signed, ensuring that potential cost savings and opportunities are not lost. Effective SM involves identifying, managing, and mitigating risks within the supply chain. Third-party risk management is essential for maintaining supply continuity and regulatory compliance and protecting the company’s reputation. By proactively addressing potential risks and consolidating the discussion of risk management into a single focused effort, your company can avoid disruptions and ensure a more resilient supply chain.
SM can help organizations streamline procurement processes, improve supplier performance, and expand into new markets. By consolidating and optimizing the supplier base, companies can achieve strategic value and drive business growth. Implementing preferred supplier programs further enhances value by ensuring adherence to prenegotiated rates and streamlined contracting. Data-driven decision-making using advanced analytics and artificial intelligence enables companies to generate powerful insights to manage suppliers more effectively, improve efficiency, and decrease costs.
Taking a strategic approach to key supplier relationships allows organizations to exert greater influence over their suppliers, treating them as an extension of their procurement teams. Through supplier portfolio management, companies can align supplier capabilities with their business objectives and drive continuous improvement. Furthermore, sustainability and diversity are increasingly important considerations in SM. Organizations should evaluate and align suppliers with environmental, social, and governance objectives, as well as municipal regulations. By promoting sustainable and diverse supplier practices, companies can enhance their reputation and contribute to positive social and environmental impact.
Our well-established experience
KPMG has a global presence in 143 countries and a team of over 3,000 procurement and SM professionals, including over 350 in the US, India, and Mexico. Our firm is well positioned to help organizations such as yours unlock the full potential of their supplier relationships. We have a well-established track record of driving value for clients, managing over $1 trillion in spend through deployed eProcurement technologies, and achieving compliance leakage savings of 15 percent–40 percent across multiple clients.
We offer a wide-ranging suite of services to support organizations in their SM journey:
Bring leading practices and assess gaps in risks, contracts, performance, governance, processes, technologies, and reporting.
Develop detailed requirements and design solutions and processes that use leading practices and enhanced technologies.
Support procurement in negotiations by developing plans, facilitating with suppliers, and driving contracts to completion.
Run programs for clients to increase value, improve effectiveness, produce keen data insights, and enhance compliance.
Assess and execute digital capabilities that support client objectives and TOM to drive innovation and leverage scale economies.
Analyze supplier data to identify patterns and improvement areas to enhance supplier performance.
Together, we can help your organization position itself for long-term success in an increasingly complex and competitive business environment.
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