To realise the potential of SMEs, we must only consider suppliers who are able to meet the requirements highlighted in your strategic fit exercise. This all your need!

This is why determining your requirements to align with market segment needs is so important.

We need to also ensure selected suppliers have the appropriate standing within the industry. Working with such suppliers will raise the level of performance across the supply chain – because your A-category suppliers insist on it!

A-category suppliers will only work with you if they hear about your innovative strategies and impressive objectives. These strategic ideals will raise returns and that is what they want to hear before they will consider working with your team. And boy, we all need them on our team!

Imagine having suppliers making suggestions to increase your margins, reduce costs, or offer advice during R&D inclusion initiatives. This sounds logical and sensible, but so few have this in place!

“Why would these A-category suppliers help us?” Well, they are not only helping you. The structure of the supply chain needs to be inclusive so all participants prosper. This is how supply chains add value.

“Why don’t many of these suppliers form part of SME supply chains?” One of the most common reasons is that the material cost prices from these suppliers are not the cheapest. With so many sourcing teams focused primarily on the cost price of an item, A-category suppliers tend to form part of supply chains of very innovative and successful organisations. 

The fact that some organisations are willing to pay more stems from the fact they know that the total value they receive from their A-category partner is worth so much more than a slightly more favourable cost price.

 Before selecting a supply partner ensure you know what is included in each prospect’s offer and does it enable you to meet the expectations of market segments being targeted.