SUPPLIER INNOVATION SHAPING THE FUTURE OF PROCUREMENT

Mere cost control can no longer be the sole focus for procurement, which now has to leverage supplier innovation to drive competitive advantage

WRITTEN BY: SEAN ASHCROFT

McKinsey research shows that organisations that regularly innovate in partnership with suppliers are more likely to see the biggest earnings growth – sometimes up to 10% more.

Supply chain leaders, especially in procurement, already know this, because 88% of respondents to the survey – called Reimagining Procurement for the Next Normal – said they were already running joint-innovation initiatives with suppliers, or were planning to do so.

That report was published back in 2020, in the midst of a pandemic that was a catalyst for supplier innovation, as organisations sought to make procurement and supply chain more-strategic in nature. In the three years since, leveraging supplier innovation has become pivotal to achieving competitive advantage.

Here, we share insight on the subject of supplier innovation, from three people extremely well-placed to comment. All were speaking as members of panel on a virtual event held by Digital Procurement World.

Elvire Regnier Lussier (ERL) is a former CPO with the L’OCCITANE Group and is now a CPO consultant and coach.

Mark Perera, (MP) is Chairman & Founder of Visibl, a supplier relationship management platform.

Alexandra Tarmo, (AT) is the newly named VP of Procurement Center of Excellence with American consumer health company, Kenvue, having previously been Head of Partnerships & Social Procurement with Unilever.

Elvire Regnier Lussier

CPO CONSULTANT AND COACH

INDUSTRY: PROFESSIONAL SERVICES

Lussier is a former CPO with the L’OCCITANE Group, a French luxury retailer of personal care products and home products. “My vision is that regenerative procurement is the future of procurement,” she says.

Mark Perera

CHAIRMAN & FOUNDER

COMPANY: VISIBL INDUSTRY: SUPPLIER RELATIONSHIP MANAGEMENT

Perera founded Vizibl to support supply chain decarbonisation through effective supplier collaboration and innovation. “I am committed to driving sustainable and responsible procurement,” he says

Alexandra Tarmo

VP, PROCUREMENT CENTER OF EXCELLENCE

COMPANY: KENVUE INDUSTRY: HEALTHCARE

Before joining American consumer health company Kenvue, Tarmo was previously Head of Partnerships & Social Procurement with Unilever.

“I am a passionate procurement leader, embracing DE&I every day, and aiming to make the world a better place,” she says.