Supplier management as a core competency

Reliable partners are increasingly a success factor for companies

As globalization of procurement markets gains ground, supplier management is becoming a business core competency. This applies both to strategic and to operational purchasing. Efficient design, management, and development of the supplier portfolio and supplier relationships are becoming a major strategic challenge.

Globalization and the Internet have transformed trade throughout the world. While in the past, the focus was on exchanging goods and services, today it is on exchanging data and information. In the future, this will be joined by timely and critical evaluation of suppliers’ services and associated risks. Reliable partners will increasingly become pivotal for companies’ success.

Tailored planning of supplier management

The growing share of third-party services presents ever more complex tasks for strategic purchasing. Greater integration of suppliers and their increased responsibility for technology are playing a key role in this development.

Efficient supplier management entails determining the processes for which the supplier is to be integrated into the value chain. It is essential to continually evaluate suppliers based on defined KPIs. To implement this successfully, companies must fulfil certain requirements. These include standardized capture of suppliers’ master and service data. To ensure a smooth workflow, production and logistics data must be exchanged in good time.

End-to-end supplier management with SAP

KPS combines extensive end-to-end process expertise throughout the value chain with detailed knowledge of SAP solutions. This also includes specific software such as SAP Supplier Lifecycle Management and supplier relationship management with SAP Ariba. KPS provides an end-to-end concept that supports its clients when it comes to implementing the strategic tasks. Solutions are built taking the following factors into account:

  • Standardized supplier evaluation and results analysis
  • Standardized capture of supplier master and performance data (KPI scorecards)
  • Timely exchange of production logistics data
  • Analysis of product quality, technology, delivery times, and cost analysis, as well as presentation in reports and dashboards
  • System-based integration into product development processes
  • Coordinated and communicated supplier rating
  • Timely and coordinated communication with suppliers

During implementation of supplier management solutions, KPS supports its clients with an end-to-end concept. Thanks to their solid process expertise and detailed knowledge of SAP solutions, the KPS consultants are in a position to implement supplier management in line with their clients’ specific requirements. In addition to implementing solutions, KPS also assumes responsibility for the necessary support and ongoing optimization tasks following go-live.