Become Customer of Choice With Supplier Experience Management
Success for any organization is now either mutual with its suppliers, or it doesn’t exist. The last decade has seen a fundamental and permanent shift in supply chain relationships and leading organizations recognize that their future growth relies on the strength of their supplier base.
These companies see that:
Success isn’t a zero-sum game; for a business to win, doesn’t mean its suppliers have to lose
Suppliers are not a commodity. The best partners, working at their best are a serious competitive advantage
Every supplier is different; a unique experience is required to make each supplier relationship flourish
of companies have more than two supplier facing systems that their suppliers interact with
of organizations say they need to improve time to resolve enquiries from suppliers
of organizations say that better interdepartmental communications are needed for supplier-related matters
say ‘regional and local requirements’ is one of the top 5 biggest obstacles to improving supplier experience
SXM: Why Is It More Important Than Ever?
Making the case for Supplier Experience Management
In the first of a three-part series ‘Putting the Supplier Experience at the Forefront of Strategic Procurement,’ we focus on how to make the business case for Supplier Experience Management (SXM).
Supplier Experience Management in Practice
In Part 2 we are joined by Costas Xyloyiannis, CEO, HICX and Adam Brown, Head of the Digital Garage at BT Sourced. We explore SXM in practice through a combination of looking at what’s happening today and how Procurement can focus to be ready for tomorrow.
What are the benefits of SXM?
In the final part of the series, we look at supplier centricity and the ROI of SXM. For this discussion, we are joined by Mary Beth Lang, Chief Supply Chain and Procurement Officer at Kaiser Permanente; and Robert Bonnar, Global Procurement Director, at SHV Energy.
Removing the Friction From the Supplier Experience
Too often, large organizations create far too much friction in the relationships with almost all their suppliers. While it’s usually unintentional, this creates pain and cost for those suppliers, which in turn has a knock-on effect on the manufacturer themselves.
We’re talking about the number of different systems suppliers have to log in to, and about the number of data requests – often duplicated, often pointless, and usually with little in the way of instruction – which leaves the supplier to figure out whether the latest request applies to them.
And we’re talking about evermore ‘initiatives’ being passed down from customer to supplier, whether compliance-driven, or relating to any number of new directives on innovation, sustainability, diversity, and more. The burden of these new initiatives falls disproportionately on suppliers as they have to investigate, document, and certify each time.
Focus on Innovation with Supplier Experience Management
Supplier Experience Management means removing these friction points. This frees up supplier time to focus on more value-added activities such as product innovation. It reduces supplier cost to serve you which in turn supports more favorable pricing, and it puts you in pole position to be the customer-of choice for every supplier.
Dr. Elouise Epstein – Kearney – Supplier Experience
Underpinning both the supplier’s experience of working with you and your company’s ability to make the best possible decisions and operate most efficiently, is supplier data.
Poor supplier data is at the root cause of thousands of micro-inefficiencies that plague large manufacturers, requiring staff to check and double-check supplier information and unravel issues caused by duplicates or errors, and it undermines trust such that even good data is checked, just in case.
Supplier Experience Management has as its core, the understanding that data and supplier experience are intrinsically linked. Efforts to address bad data – through data cleansing and other such initiatives – are doomed to fail because they miss the fundamental point that the supplier owns is the single source of truth for their individual data, and a poor experience discourages and prevents them providing this to you.
A 1:1 Supplier Experience
By borrowing from their colleagues on marketing, procurement and supply chain teams can use technology to deliver an experience tailored to each individual supplier:
Give them access to all the information they need to supply you
Reduce the noise and give them only the information they need
Provide access to all the necessary systems through a single, personalised portal which is configured to the specific needs of every individual supplier
Maintain a complete and accurate data profile for every supplier, which is managed by the supplier themselves, and used by every system in your business, reducing errors for you and re-work for them
“It’s about who has the shared ambition, who has the shared objective, who can work with you and invest their time alongside you to really be jointly successful. We talk about the supplier experience, hopefully people have got the idea that suppliers are an extension of our organization. Let’s maintain those relationships.”
Robert Bonnar, Senior Global Procurement Director at BP
“Procurement is just taking care of the first three dates in the relationship, there’s a whole marriage to come – which really we are not involved in. The experience bit is as much about people as it is about the systems and the tools.”
Adam Brown, Head of Digital Garage at BT Sourced
“Any company that has a long-term vision will make sure that the supplier network is sustainable. We make sure that the suppliers we would like to work with equally like to work with us. It just cannot be a one-way street.”
Ramit Mahajan, Head of Supply Chain Enablement, India at Henkel
“When I think of supplier centricity, and I think of all the work that we did during COVID, it really dynamically changed the way that we thought about our supplier partners, the manner in which we relied on them.”
Mary Beth Lang, Chief Supply Chain and Procurement Officer at Kaiser Permanente
“At the core of SXM, actually, is a data topic which is the true benefit for large organisations embarking on it, is to solve the massive data challenge which they have today. At the end of the day, without data, you cannot be efficient. The experiences today are fully digital. The philosophy here is that better experiences create better data, better data creates better experiences.”
Costas Xyloyiannis, CEO of HICX
Supplier Experience Insights & Opinion
Why Is Supplier Experience Now Such a Key Priority?
The era of Supplier Experience is here Accelerated by recent global events and propelled by today’s need to fundamentally change the way in which organizations interact with their suppliers, there is a realization in the industry that the enterprise-supplier relationship cannot be treated as a zero-sum game. Suppliers as an extension of the organization Instead, […]
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What Is Supplier Experience Management (SXM) and Why Is It Important?
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The Impact of Supplier Experience Management on ESG Initiatives
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This infographic provides a quick summary of the key findings from our recent Supplier Experience Survey report. Every supplier is different, so it makes sense to provide the unique experience required to make every relationship flourish. Whether direct or indirect, strategic or occasional, high risk or not, for each supplier to deliver their best, it […]
Supplier Experience Working Group launched as supplier centricity takes center stage
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How supplier experience management drives innovation
In the latest episode of ‘Dial P for Procurement,’ broadcast live on Tuesday 16 March, HICX CEO, Costas Xyloyiannis, joined co-hosts Kelly Barner (Buyers Meeting Point) and Scott Luton (Supply Chain Now), along with Quentin Roach, Senior Vice President, Supply Chain & Chief Procurement Officer at Mondelez International. They discussed changes in demand in the […]
How does Supplier Experience Management create a win-win for both customers and suppliers?
The last years have seen a fundamental and permanent shift in supply chain relationships and leading organizations recognize that their future growth relies on the strength of their supplier base. Supplier Experience Management (SXM) is the practice of creating the conditions in which a buying organization and all of its suppliers can achieve mutual success […]
Elevating Supplier Experience: How Supplier Experience Adds Value
In this webinar on ‘Elevating Supplier Experience’, Tania Seary, Founder of Procurious, is joined by Costas Xyloyiannis, CEO at HICX and Amy Fong, VP at Everest Group to discuss the benefits of improving the way in which organizations work and engage with their suppliers. In today’s era when companies are relying more and more on their supplier community due to rapid […]
Innovation in Digitalisation and Technology: Insights from the Ecosystem
During a three-day conference ‘Innovation in Digitalisation and Technology’, Costas Xyloyiannis, CEO at HICX, joined Steve Hall of Procurement Leaders for a session on ‘Insights from the ecosystem’, broadcast live on Thursday 27th May. They discussed Supplier Experience Management (SXM): how it is moving up the agenda and how, in combination with technology, it can generate greater value for customers and suppliers alike, as well as improve competitiveness. The rise and adoption of […]
Putting the Supplier Experience at the Forefront of Strategic Procurement
SXM Webinar Series with Art of Procurement In the first of a three-part Art of Procurement Live Webinar Series ‘Putting the Supplier Experience at the Forefront of Strategic Procurement’ in partnership with HICX, we focus on how to make the business case for Supplier Experience Management (SXM). For the session, we were joined by Charlotte Anabelle de Brabandt, a representative of the Institute for Supply […]
SXM Webinar Series with Art of Procurement This is the second webinar in a three-part Art of Procurement and HICX live series, hosted by Kelly Barner and all focused on the supplier experience. This webinar focuses on supplier experience management in practice, a combination of looking at what’s happening today and how Procurement can focus […]
Supplier Centricity and Supplier Experience Management: What are the benefits?
SXM Webinar Series with Art of Procurement The third and final part of the Art of Procurement and HICX live series, hosted by Kelly Barner, focuses on supplier centricity and the benefits of Supplier Experience Management (SXM). Kelly is joined for this discussion by Mary Beth Lang, Chief Supply Chain and Procurement Officer at Kaiser […]
Lenovo joins our growing list of Global 5000 customers embracing Supplier Experience Management (SXM)
Last week we announced an exciting new partnership with Lenovo, the technology leader best known for its extensive portfolio of information technology products for businesses and consumers. As well as improving its vendor accuracy, onboarding cycle time and compliance, the partnership will also help Lenovo to enrich the experience it offers to its vendor base. […]
How Data Drives Supplier Experience, Digitization and Transformation
Delivering Supplier Experience Management (SXM) through Best-of-Breed In the first of our series of webinars on Delivering Supplier Experience Management (SXM) through Best-of-Breed, panelists from Sievo, HICX, and BP discussed Best-of-Breed technologies and how data-led procurement solutions create value. In this second part, Charlotte de Brabandt, Global Procurement Expert, Author, Digital Enthusiast, and moderator of this session is joined by […]
Supplier Relationship Management & Supplier Experience Management in Practice
The turbulent events of 2020 and 2021 brought the world to a virtual standstill and a realization of just how dependent organizations are on supply chains and their supplier communities. Companies reacted by shifting their focus towards collaboration, establishing true partnerships and driving value for all stakeholders, rather than simply thinking about cost savings. This […]
Delivering Supplier Experience Management (SXM) through Best-of-Breed In the first of our series of webinars on Delivering Supplier Experience Management (SXM) through Best-of-Breed, our panellists discussed Best-of-Breed technologies and how data driven procurement solutions create value. Robert Bonnar, Senior Global Procurement Director at BP and moderator for this session, was joined by Sammeli Sammalkorpi, Co-Founder and CEO of Sievo, a company focused […]
Anyone who works in Procurement and Supply Chain will be aware of the level of change industries have been through in the past few years. The procurement function is no longer merely tactical but is becoming increasingly strategic. Technological advancements are continuously improving, data issues are still not resolved, and the turbulent events at the […]
The Third Supplier Experience Community: Exploring how to achieve more agility, less friction
The third Supplier Experience Community event recently took place, this time welcoming around thirty executive attendees, from some of the leading global brands. Supplier Experience Community: Background The group meets under Chatham House rules in order to provide a forum in which to explore how to drive a ‘Supplier Experience mindset’ in organizations. It includes […]