Strategic procurement is the champion of supplier innovation. Suppliers are a great source of innovation if they are properly managed and incentivized by procurement organizations. For the most strategic procurement teams, supplier-initiated innovation is imbedded in the process with, for example, suggested design options, alternative manufacturing approaches, substitute materials, and leaner business processes. When facilitated properly, supplier innovation brings better ideas quicker and at lower cost than internal research and development teams may be able to deliver.
Strategic procurement teams that win at supplier innovation have four best practices:
- Scorecard suppliers on innovation and track the value derived
- Integrate supplier innovation into the business products and strategic plans
- Share the risk and reward of open innovation between buyers and suppliers
- Utilize leading procurement technology to capture supplier innovation and track the value derived
With BravoSolution as your technology partner, you can be confident your procurement efforts are directed toward value creation and contribution. BravoSolution assists strategic procurement with BravoAdvantage, the strategic procurement platform that enables organizations to generate more value, influence innovation and reduce risk across the supply chain.
BravoAdvantage Supplier Value Management (SVM) is a holistic, supplier-centric application encompassing supplier on-boarding, segmentation, evaluation, risk, and development with 360-degree supplier integration. BravoAdvantage SVM allows procurement teams to work with their supplier base to better understand who they are; qualify, segment and manage their risk; and develop innovative and collaborative relationships.
Your supplier innovation initiatives will excel with BravoAdvantage helping you track the innovation and value derived. John W. Henke Jr & Chun Zhang said it well, “When customers collaborate with suppliers, they can build trust, reduce relational stress, and increase innovation-related activities.”