Preferred Status
In This Section: Introduction Best Total Value Quality & Service Innovation Market Information Stability Best Practices Honest, Ethical and Fair Treatment
Introduction
The relationship between procurement and its suppliers is key to business success, the need to manage expectations we believe is fundamental in maintaining long-term mutual beneficial trading relationships.
The purpose of this document is to articulate the sourcing standards that will be the very foundation of how we in procurement will define the term Preferred Supplier.
This document communicates our goals and defines our expectations of both our potential and existing preferred suppliers. Successful supplier support of these values we believe will translate into long term trading relationships and new business opportunities.
Best Total Value
Our Goal:
Procurement will offer the business best total value relating to the services and goods they purchase.
Your Role:
We expect our preferred suppliers to continually offer best total value to our company for our requirements of goods and services.
Total best value is driven by business needs and includes a number of components in addition to price.
- Assurance to supply.
- R&D / Marketing Contributions.
- Quality
- Speed to Market
- Responsiveness
- Working Capital
- Market information
- Project / Resource Support
Quality & Service
Our Goal:
We recognise the relationship between the quality and service to OUR customers and the service levels from our suppliers.
Aligning the supplier quality and service with our customer expectation is key to our business retention and growth.
Our measurement and sharing of quality and service KPI's to our preferred suppliers will be key to achieving our service & quality goals.
Your Role
Preferred suppliers will minimise the disruption to our business by continually offering high levels of service that aim to exceed our expectations.
On receipt of quality service data we expect our preferred supplier to take appropriate action (if needed) to quickly lift service standards.
Innovation
Our Goal:
We are seldom satisfied with the current situation and continually challenge ourselves to develop and create new purchasing opportunities that will support our business needs.
Your Role:
Preferred suppliers will identify potential projects for improvement and can demonstrate past examples were success has been delivered to our business.
Market Information
Our Goal:
Key to our success is the need to understand market conditions, decisions and actions are taken by considering external influences.
Your Role:
We see the role of our preferred suppliers as critical in the supply of key market information relating to their goods or services.
This includes but not limited to material index, competitor analysis, and market overviews.
Information sharing will be defined in supply agreements and protected by a mutual confidentiality understanding.
Stability
Our Goal:
We understand that profitability & cash flow is a key success driver to our business.
We take ownership of our business measures and our efforts to maintain healthy performance.
We understand this helps to generate new business opportunities for our suppliers and ourselves and secures the longevity of our company.
Your Role:
Preferred suppliers will work with us to support our profitably & cash flow goals, they understand that spend areas that do not deliver a return on our efforts should be jointly managed to success.
Best Practices
Our Goal:
Good ideas are not exclusive to our business, we feel working with progressive preferred suppliers will stimulate change within our business.
Tapping into our supplier's successes and highlighting our own we believe will share best practices in order to develop mutual benefits.
Your Role:
We want to hear about key successes within your business, to assess whether your efforts can be translated to our business.
In return preferred suppliers are welcome to visit our site to view first hand our developments, meet with key personnel to discuss mutual goals for improvement.
Honest, Ethical and Fair Treatment
Our Goal:
We believe that buyers and suppliers in any relationship work best when there is a foundation of trust between them.
By treating preferred suppliers honestly, ethically and fairly we do our part in building that foundation.
Your Role:
Preferred suppliers will embrace our efforts and treat our business in the same way. By adopting this cultural ethos you will position yourself as a long-term supply partner.