Corporate Boardroom Series: Reducing Supplier Relationship Costs with Progressive Supplier Reduction

January 20, 2010
Industry Trends
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

The monthly Corporate Boardroom Series explores current business challenges, helping C-level executives prepare for the next “hard question” their boards of directors are likely to ask. Each brief focuses on a single question, provides Celent's view of the issues behind the question, and defines specific action steps that will position the company to deliver an effective response.

The third installment of this series focuses on providing practical guidance to corporate and bank buyers, who are faced with the challenge of minimizing the administrative costs to manage their suppliers and, at the same time, improving their payables without putting business relationships at risk.

“Current corporate attention is to ensure business continuity with key suppliers. Administrative costs and a lack of historic information about entrant suppliers’ performance make it harder to improve working capital ratios,” says Enrico Camerinelli, senior analyst with Celent's Corporate research group and author of the report. “New practices to manage supplier relationships are available to corporate executives; progressive supplier reduction is the most noteworthy one.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Question from the Board

1

Problem Statement

1

Celent’s View

1

Action Items

1

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