SUPPLIER CASE HISTORY

Supply Chain Optimisation

Supply Chain Optimisation

ISSUE:
Our client, an online sports retailer, wanted to build more synergistic relations with suppliers in order to achieve significant improvements in its supply chain. They suffered from high working capital, low availability, ineffective communication, late payments and poor customer service. Corporate objectives centred around tripling sales over 5 years, dramatic increase in market share and preparation for a sale by its VC owners.

PROCESS:
Our client commissioned FOTP to build a Supplier Advocacy and Feedback survey to measure the health of their relationships with suppliers. In particular, how the Procurement Function was perceived and to diagnose any problems relating to their People, Process, Procedures, Communication and Commercial terms.

We invited suppliers to rate our client across key Performance Areas and provide supporting comments as to why.

OUTCOME:
We presented our findings to the client, identifying issues they needed to address if they were to build trust and increase collaboration with key suppliers. We also presented an overview of our findings at the annual Supplier Conference; our client then outlined their improvement plan. We repeated the research 6 months later to identify changes in perceptions. Again, outputs were shared with suppliers.