Supplier relationship management – The crucial role of strategic supplier partnerships in building a resilient supply chain

Introduction

In Biopharma, the need for efficiency continues to increase as the industry looks to reduce drug development timelines and cost (1). Supplier partnerships play a crucial role in building a resilient supply chain and operational excellence. In 2024, at the start of keynote address at Sourcing & Procurement conferences, conference attendees were polled, asking the following questions: 1) How effectively does your organization manage cross portfolio Supplier Relationships? 2) Have you leveraged Supplier Relationship Management for supplier collaboration and oversight? 3) What solutions/thoughts have you gained to leverage Vendor Relationship Management for more effective vendor oversight? When nearly 200 Biopharma professionals representing over 20 companies were asked how effective their organization managed Supplier Relationships, only 10% viewed them as Highly Effective, while 65% were Moderately Effective and 25% Minimally Effective. When asked if Supplier Relationship Management principles were used for collaboration and oversight, 65% said yes. Only 15% of participants had dedicated resources and a formal Governance Model for Supplier Relationship Management. When asked the one word that stood out from our discussion for more effective supplier partnerships, the top three were governance, transparency and expectations.