TOPDESK MAGAZINE - SEPTEMBER 2015 15

Elisette Daams and Debora Nienhuis

are both TOPdesk consultants and help customers set up,
improve and optimize their processes.

PARTNERSHIP WITH YOUR

SUPPLIERS
More and more service organizations are switching to a more
management-focused role. This makes it increasingly important
to get collaboration with suppliers on the right track with clear
agreements and dialogue about progress. What is the best way to
go about this?

Good supplier management

can translate the results into a service

Good supplier management perpetually

catalogue and create a list of requirements.

Targeted instructions for

suppliers

safeguards the quality, stability and continuity

This makes it easy to select the right supplier

The Purchasing Portfolio Model, a matrix

of services while also lowering costs. Good

for the services you must outsource. The

designed by Peter Kraljic, can help you create

supplier management is also challenging,

customer satisfaction survey can also lead

a map of your suppliers (image 1). The matrix

because not all suppliers are equal. Some

to adjustments in the service catalogue

lets you classify the various products and

visit sporadically, while you collaborate so

if the service as it is currently delivered

services and analyse the role of each supplier

closely with others that they seem more

does not meet the customers needs and

within the organization. Classifying suppliers

like a colleague than a stranger on location.

expectations. It is also important to look into

grants insight into the way you can best work

Mapping these differences between suppliers

whether agreements made in contracts are

with your suppliers and how you can give

gives you a clear picture of how you deal with

honoured. You can do this with reports and

them targeted instructions. Eventually this

each one.

regular meetings with your supplier. A good

leads to better and more professional services

partnership with your supplier helps the both

for your customer.

If you want to practice good supplier

management, it is important to first of

of you take (small) steps towards proactive

all have clear insight into your end users

improvement. Moreover, awareness of the

A first step towards more targeted supplier

needs and expectations and therefore

suppliers role and choosing the right supplier

management is determining which types

the desired services. These can be mapped

for a certain type of product or service are an

of products and services you offer your end

using a customer satisfaction survey. You

important aspect of supplier management.

users. Kraljic defines four categories: leverage

Which products and services do you offer?

16 TOPDESK MAGAZINE - SEPTEMBER 2015

Financial risk/interest

High

Low

Leverage items

Strategic items

Alternative suppliers available

Standard products

Hard to switch suppliers

Critical for cost price and supply

E.g.: office furniture, computers, company cars,

catering, cleaning

E.g.: certain software, training, network/data,

cleaning

Non-critical items

Bottleneck items

E.g.: printing, office supplies, cleaning

products, glass cleaning

E.g.: mail delivery, software

Large supply
Large product diversity
Act more expensive than value

Low

Monopoly market
High entrance barrier

Supply risk

High

Kraljics purchasing portfolio helps classify products

and services

items, strategic items, non-critical items and

With this type it is important to safeguard

Bottleneck items are often low value but can

bottleneck items. Some products and services

the quality of the products and services. This

only be delivered by a very small number of

have a profound effect on your organizations

is best done by entering into a partnership

suppliers, or even just one. This makes for a

financial results, others less. And for some

with your supplier and creating mutual trust.

high delivery risk. Think of mail delivery, or

products and services it really matters when

This encourages the exchange of information

certain software. This can cause relatively high

and to whom theyre supplied. The financial

and the mutual willingness to help. Increasing

prices, long delivery times and poor service.

and supply risk are indicated on the horizontal

the suppliers involvement in both the

With bottleneck items the main concerns

and vertical axes in image 1.

tender phase and the implementation phase

are reliable suppliers and timely delivery

is advisable. It is also important to use

of products and services. The price is less

suppliers and are relatively expensive. They

functional specifications to clarify the exact

important. With this type of product and

are standard products, such as office furniture

wishes, requirements and expectations for

service it is important that you look for

and hardware. The market has plenty of

both parties.

alternatives so that you minimize your

Leverage items can be delivered by various

dependence on such unique suppliers. You

suppliers for this type of product and service,

making the supply risk low.
Every product and service category requires

Non-critical items are often low-value and you

could do this by making specifications for a

have access to several alternatives. Most costs

certain product or service more lenient.

a different approach. With leverage items

stem from the products order and supply

you are often in control thanks to the strong

process, instead of the actual item itself.

Classifying your suppliers

competition between the various suppliers.

Delivery efficiency is very important.

The categorization of products or services

Good service can help a supplier stand out,

With non-critical products it is advisable to

can differ from organization to organization.

but the price can always be a good reason

lower the number of suppliers per product

When it comes to cleaning, hospitals

to switch.

group to simplify the ordering process. You

do not have the same requirements as

can do this by offering the option to order

office buildings. This means that the two

Strategic items are mostly customer-specific,

online, and reduce the number of invoices

organization types will classify the supplier

are often relatively high-value and are only

by making agreements about a monthly

for cleaning services differently. Legislation,

delivered by a select number of suppliers. As

payment using a cumulative invoice. It is

such as inspections and tender obligations,

a result, changing suppliers often has a bigger

also good to buy in bulk, as this benefits the

can affect the classification. So it is of utmost

impact. Think for instance of software, but

price and delivery. With so much competition

importance to understand your organizations

also access or network management and

between suppliers for this type, you can really

position and your end users wishes and

data services.

reap the benefits.

TOPDESK MAGAZINE - SEPTEMBER 2015 17

expectations before you can place the

and complaints, the customer satisfaction, the

products and services and therefore the

level of supplier involvement and the quality

suppliers within the matrix.

of the delivered services and products. Do

This classification gives you an idea of

not just focus on the negative during periodic

the time and energy you should invest in

evaluations: make sure to pass on compliments

the relationship with the supplier and the

too. This motivates all parties involved.

monitoring of agreements and performance.

The method, frequency and depth of the

A partnership

supplier assessment is entirely up to you and

In order to practice good supplier management

depends on the type of activity and the type

it is important to know your suppliers well. It

of supplier. When dealing with non-critical

is this knowledge that you use to determine

items it is not unusual to measure against

how to deal with this supplier, and how much

standard matters such as the number, the

energy to invest in the partnership. This lets

price and the invoice quality. However, with

your suppliers make more targeted adjustments

strategic items it is advisable to also judge

if necessary, contributing to a better and more

the supplier on the number of malfunctions

professional service for your customers.

A DV E RTO R I A L

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