Business readiness

Top Suppliers

What is a Top Supplier?

A list of top suppliers outlines the details of your company’s key suppliers based on their share in your procurement costs.

A list of top suppliers provides information on the key suppliers of your company, including:

  • Company Details: Name, registration, geographic presence, specialization, capabilities, payment and contact details
  • Procurement Contracts: Raw materials and services procured, frequency of engagement, start and end dates of their agreement with your company
  • Procurement Cost Contribution: Contribution of key suppliers that accounts for more than 5% of your procurement costs
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Why is Top Suppliers important for business today?

A list of top suppliers enables your company to:

  • Track and assess the importance and contribution of top suppliers
  • Evaluate your products’ profit margins by analyzing procurement costs (e.g.raw materials) and retail price across product segments
  • Understand and evaluate supply and any fluctuations and satisfaction levels of your suppliers
  • Plan retention and growth strategies for your top suppliers based on agreement end dates
  • Formulate strategies to procure new products and services and diversify your supplier base
  • Assign supplier relationship managers to your suppliers for effective engagement and retention

Why is Top Suppliers important for an event tomorrow?

A list of top suppliers is important for an event tomorrow, as it helps:

  • Evaluate the types of products and services procured by your company and your dependence on certain suppliers across geographies
  • Determine the overall costs associated with procurement and the share of top suppliers in your company’s costs
  • Assess the details of your company’s top suppliers to evaluate their capability to maintain existing services as well as expansion of those services
  • Analyze any variations in your company’s top suppliers’ list, and assess any reasons behind them
  • Benchmark the procurement costs of your company against your competitors
  • Evaluate any potential risk and the impact of loss of top suppliers on your company’s performance

Pros of addressing Top Suppliers

  • Benchmark the procurement cost for top suppliers against other company suppliers
  • Evaluate the lifetime value of your suppliers by analyzing historical engagement trends
  • Engage effectively with your top suppliers and strengthen your relationship with them
  • Increase retention of top suppliers by formulating appropriate strategies
  • Ensure regular and timely supply of raw materials and products
  • Negotiate better prices and payment terms

Cons of not addressing this topic

  • Increase in risk of losing top suppliers due to lack of supplier management and retention strategies
  • Difficult to track the contribution and performance of your top suppliers
  • Negative impact on your product margins due to your company’s inability to track procurement costs
  • Increase in operational risks of your company since agreement end dates of your top suppliers are not tracked
  • Restriction on your company’s ability to diversify or expand your supplier base.

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We've worked with companies like yours for more than a decade, and on over 30,000 deals. From these experiences, we’ve learned that for a business to succeed, it must know what it has and where it’s going. Download our readiness guide for total confidence in decision making when it comes to your company. Realize your value. Own your future.
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