Retailer and Supplier Collaboration

The enhanced supply chain efficiencies that arise from effective supplier partnerships will produce win/win results if implemented correctly. Our services for retailer/supplier partnering initiatives include:

Confidential Supplier Surveys

Martec will carry out confidential interviews with the key executives of your main suppliers to develop a plan of action for improving the supply chain.
Experience has shown that these interviews, when conducted by an external organization in total confidence, are an excellent source of ideas and suggestions for improvements. They identify real problems that vendors may be afraid to raise for fear of jeopardizing the relationship. This can be the starting point for major improvements in customer service and reduced supply chain costs. We ask you to select your key suppliers for us to approach and interview in confidence. When all the interviews are complete, Martec analyzes and presents the findings of the survey to you in an aggregated format so that individual company comments cannot be identified. This confidentiality encourages active vendor participation. We also present recommendations and a plan of action so that key concerns and problems can be addressed in the most effective way.

Pilot Supply Chain Projects

Our experience shows that the best approach to significant improvements in supply chain efficiency starts with a small scale pilot program - a few key suppliers focused on a limited group of products. In this way, results can be assessed effectively and there is more freedom to make changes while avoiding unacceptable risks. Tested improvements can then be made with other suppliers or product groups as required. Martec will facilitate this process of supplier partnering for you. The main steps are:

• Develop process maps of the various supply chains that exist. Particular attention is paid to the number of times a product is handled and the interfaces between the retailer and supplier. The packaging and labeling requirements at each stage need to be examined, to reduce handling and costs. The time taken at each step in the supply chain and all the dependencies are recorded. The wait time between each step is measured or assessed. Martec has developed a powerful diagramming approach that helps clearly see where the potential for improvement lies (see extract above).
• The availability of data up and down the supply chain is examined. Consideration is given to making more accurate predictions of demand and identifying factors that contribute to the bullwhip effect - self induced unnecessary peaks and troughs in demand.
• Martec facilitates the initial meetings between retailer and supplier. The process starts with presentations of the strategy, concerns and long-term plans for the retailer and the supplier. It progresses to a review of the process maps. An analysis of the findings of the supply chain mapping will identify potential areas for improvement and then an action plan for each of the potential improvements is drawn up. We ensure that the objectives for each project are definable, measurable and fair so that benefits will accrue to both parties. 
• Martec will then help implement the pilot supplier programs to ensure that the objectives are met.
• A review of the results of these pilot programs needs to be undertaken to develop a strategy for implementing these improvements across the wider supplier base where they are applicable.