Leading companies in industries from high-tech manufacturing to pharmaceuticals are starting to look at suppliers in a new light – not just as vendors from whom goods and services are procured, but as business partners with expertise, assets and capabilities that can be used to create competitive advantage. This shift represents an evolution beyond strategic sourcing.
If you want more from suppliers, you must change the way you measure performance. Metrics are not sufficient to transform supplier relationships and the value they deliver. Nevertheless, changing what a company measures is a critical step to changing how it views and works with suppliers, and, in turn, maximizing the value it creates through its relationships with them.