Suppliers are the extension of the company, and its global performance is also driven by suppliers' ability to deliver excellence. A strong Supplier Relationship Management strategy enhances the value of partnerships with key suppliers.

Procurement plays a key role in supporting the company’s global strategy. That’s why it’s critical to have the right systems, dashboards, and metrics in place to monitor procurement’s ability to deliver on its objectives — such as cost reduction, risk management, and supplier relationship management (SRM).

Clear sourcing strategies enhance negotiation leverage, strengthen supplier relationships, secure cost savings, mitigate supply disruptions, and drive continuous improvement. Therefore, category management helps the company achieve its global goals (e.g., cost reduction, speed to market).

A successful negotiation helps secure the best value out of the supply base in terms of cost, quality, risk, and service while building sustainable supplier relationships.