Collaboration, in the context of buyer-supplier relationships, is a subject we've been covering regularly in CPO Agenda over the past two years. But in this issue we take an in-depth look at it via a number of complementary articles.
Our coverage is underpinned by a fascinating piece of research carried out among over 300 companies in North America, Europe and Asia-Pacific by Jonathan Hughes and his colleagues at Vantage Partners, a US-based relationship management consultancy. The fact that respondents were drawn from both the buyer and seller sides provides not only a balanced perspective, but also an illuminating insight into the different perceptions about the state of their relationships, where additional value can be created, and the barriers and enablers to achieving it.
One company they cite as a world leader in supplier collaboration is the car maker Toyota. In our interview slot, European purchasing boss Mark Adams explains its "tough but fair" philosophy and describes some of the practical challenges in trying to implement it outside Japan. For me, the key message from this is that it's entirely possible to partner long term with key suppliers without compromising on either cost or supply base competitiveness - providing you have the right attitude and work hard enough at the relationship.
A live issue for many CPOs at the moment is the question of internal "ownership" of supplier relationship management. As consultant Alan Day notes, while procurement stakes a good claim to this territory, its leadership role is neither uncontested nor guaranteed. If they haven't already done so, CPOs need to seize the opportunity and construct a compelling business case. The issue also crops up in our roundtable discussion on "world-class procurement", with one participant emphasising the importance of "talking with one voice" to suppliers right across your organisation.
For Pete Connelly at American manufacturer Leggett & Platt, though, there is also an ethical dimension to the debate. He urges his peers not to "steal" margin from suppliers or treat them with contempt - two things that actively undermine the trust and openness required for effective collaboration.
Elsewhere in this issue, the CPO of consumer goods giant Procter & Gamble and former CPO of Gillette describe how they went about "jumpstarting" cost savings during the acquisition process that brought the two firms together. And we investigate what appears to be a growing trend for western multinationals - led, most recently, by IBM - to base their procurement leaders in Asia.
Which just leaves me to mention our new website, featuring all the articles from the magazine, plus the latest news and a wealth of other useful information. Why not log on to www.cpoagenda.com and take a look for yourself?
Geraint John
geraint.john@cpoagenda.com
