Search
Close this search box.
Zycus positioned as a Visionary in the 2024 Gartner® Magic Quadrant™ for Source-to-Pay Suites. Read More

Home » Blog » Procurement Technology » Cornerstones of an agile supply chain – Imperative no. IV

Cornerstones of an agile supply chain – Imperative no. IV

Cornerstones of an agile supply chain
Zycus Recognized as a Visionary in the 2024 Gartner® Magic Quadrant™
Speak to our expert and achieve similar results
Consent
This field is for validation purposes and should be left unchanged.
Table of Contents
Subscribe for the Latest Posts
This field is for validation purposes and should be left unchanged.

Till now we explored three imperatives to build an agile supply chain – Understanding the value proposition of your stakeholder, Understanding the ecosystem and Conduct scenario planning for impact assessment.

The fourth imperative is –BUILD RELATIONAL CONTRACTS.

Building relational contracts can help sourcing managers to plan for emergencies and uncertainties. A good relationship with the supplier ensures supplier support in times of adversity. Building relational contracts involves exploring options in the contracting process keeping in mind the emerging risks.

Let us understand this imperative with the help of a case study.

A major OEM player in the automotive industry was working on strict contracting terms with its supplier, who was supplier to other major OEM manufacturers. The buyer not being a customer of choice for the supplier was refused extended support by the supplier, when the buyer’s existing stock was destroyed by storm and they had to produce new products within shorter time frame.

A buyer stuck in such a scenario faces challenges like

  • Supplier remains a vendor and not a growth partner.
  • Over paying.
  • Lack of support during bad times.

Technology helps resolve these issues by enabling

  • Buyers to incorporate supplier views while writing a contract, thus giving them a sense of ownership. This coupled with a transparent process helps build a relationship of trust between the buyer & the supplier.
  • A collaborative relationship with the suppliers while  negotiating a contract.
  • A thorough evaluation of supplier performance and enrolling them for supplier development programs, if required. These programs enhance supplier performance and thus benefit the buyer.

In the next blog we will discuss the last imperative in building an agile supply chain.

Don't Forget to Share
Zycus is a leader in Cognititive Procurement. A leading SaaS platform used by many large enterprises across the globe for enabling efficiency and effectiveness of the procurement function.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top

Zycus Secures Visionary Spot in 2024 Gartner® Magic Quadrant™

Discover the path to unparalleled results.
Speak to our experts to access:
  • Insider perspectives on the Gartner Magic Quadrant findings.
  • Neutral evaluations of source-to-pay software options.
  • Strategic approaches for overcoming your unique procurement obstacles
Book Your Personalized Session Now and take the first step towards optimizing your procurement function.

Achieve Excellence in Procurement with Zycus

Contact Us - Form

By submitting this data, I acknowledge that I have read the Privacy Policy of Zycus and consent to the processing of my personal data in accordance with the terms of the Privacy Policy.