{"id":2766,"date":"2009-09-28T14:31:00","date_gmt":"2009-09-28T14:31:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2009\/09\/28\/the-most-critical-and-often-overlooked-piece-of-supplier-collaboration\/"},"modified":"2023-08-03T11:48:29","modified_gmt":"2023-08-03T15:48:29","slug":"the-most-critical-and-often-overlooked-piece-of-supplier-collaboration","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/the-most-critical-and-often-overlooked-piece-of-supplier-collaboration\/","title":{"rendered":"The Most Critical, And Often Overlooked, Piece Of Supplier Collaboration"},"content":{"rendered":"<p>Last Wednesday, I reviewed Ariba\u2019s new whitepaper entitled \u201cSupplier Nominated Savings: Accelerating Savings through Strategic Partnerships.\u201d Though I pointed out much value in the whitepaper, I did write that the approach seemed more like an RFP than a true collaboration.<\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p>Apparently, I wasn\u2019t the only one.<\/p>\n<p>In response to a related post on Supply Excellence (Ariba\u2019s blog), the Hackett Group\u2019s Pierre Mitchell commented that supplier nominated savings programs are most effective when they are not \u201cnarrowly defined,\u201d cautioning procurement organizations not to disguise the \u201cprice reduction wolf in a collaborative sheep\u2019s clothing.\u201d<\/p>\n<p>Ariba followed up with a second post on Friday, trying to clarify the \u201cwin-win\u201d nature of good supplier nominated savings programs. While the follow up was valuable, I think that there was something that could have been said more simply. And, actually, it is the most critical piece of a successful supplier nominated savings program. So I am going to help Ariba articulate it.<\/p>\n<p>What is it?<\/p>\n<p>It is <strong>communicating the benefit to the supplier<\/strong>.<\/p>\n<p>What is in it for them?<\/p>\n<p>An extension to the term of the contract?<\/p>\n<p>A larger percentage of the business?<\/p>\n<p>A bigger profit margin due to lower costs for the whole supply chain (not just the buyer\u2019s organization)?<\/p>\n<p>Oh, you didn\u2019t think of why the supplier should be excited about a supplier nominated savings program?<\/p>\n<p>You should be thinking about it. After all, the goal is to motivate your suppliers to help you. (<a href=\"https:\/\/idigtexas.com\/qd4e5a5\/\">idigtexas.com<\/a>) <\/p>\n<p>\u201cBring us cost savings, and you will get _____.\u201d And the blank cannot be filled in with \u201cthe privilege of our business\u201d or \u201ca thank you letter.\u201d<\/p>\n<p>I\u2019m explicit in my advice. You need to be explicit when communicating the benefit to your supply base.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last Wednesday, I reviewed Ariba\u2019s new whitepaper entitled \u201cSupplier Nominated [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4135,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2766","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Most Critical, And Often Overlooked, Piece Of Supplier Collaboration - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-most-critical-and-often-overlooked-piece-of-supplier-collaboration\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Most Critical, And Often Overlooked, Piece Of Supplier Collaboration - Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"og:description\" content=\"Last Wednesday, I reviewed Ariba\u2019s new whitepaper entitled \u201cSupplier Nominated [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-most-critical-and-often-overlooked-piece-of-supplier-collaboration\/\" \/>\n<meta property=\"og:site_name\" content=\"Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NextLevelPurchasing\/\" \/>\n<meta property=\"article:published_time\" content=\"2009-09-28T14:31:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-03T15:48:29+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/11\/nlpa-images-145.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1067\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Galo Matagay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:site\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Galo Matagay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-most-critical-and-often-overlooked-piece-of-supplier-collaboration\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-most-critical-and-often-overlooked-piece-of-supplier-collaboration\/\"},\"author\":{\"name\":\"Galo Matagay\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#\/schema\/person\/72d094fab77892483dfa6e061cb27eaa\"},\"headline\":\"The Most Critical, And Often Overlooked, Piece Of Supplier Collaboration\",\"datePublished\":\"2009-09-28T14:31:00+00:00\",\"dateModified\":\"2023-08-03T15:48:29+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-most-critical-and-often-overlooked-piece-of-supplier-collaboration\/\"},\"wordCount\":315,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#organization\"},\"articleSection\":[\"Procurement\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-most-critical-and-often-overlooked-piece-of-supplier-collaboration\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-most-critical-and-often-overlooked-piece-of-supplier-collaboration\/\",\"url\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/the-most-critical-and-often-overlooked-piece-of-supplier-collaboration\/\",\"name\":\"The Most Critical, And Often Overlooked, Piece Of Supplier Collaboration - 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