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Implementing supplier relationship management toolkit

The supplier relationship management (SRM) toolkit introduces the key elements of supplier management and the value of implementing consistent and uniformed practices. Explore Part 2: Implementing the SRM toolkit.

In June 2021 the Office of the Auditor General released the report Strategic suppliers: Understanding and managing the risks of service disruption. Foremost in the report was the government’s response to the global pandemic, but it also highlighted the long-term need to understand which suppliers are government strategic suppliers – and how we should coordinate and manage these important relationships.

Auditor General's overview - Strategic suppliers: Understanding and managing the risks of service disruption - Office of the Auditor-General New Zealand Tumuaki o te Mana Arotake

Government does not have a central view of supply risk or whether suppliers are prepared for major events.

Suppliers have relationships and contracts spanning multiple agencies, increasing the cost and complexity for agencies and suppliers. New Zealand Government Procurement has two workstreams underway which hope to chart a way forward. The first is a proof of concept with two of government’s largest suppliers Downers and Datacom. There will be more news on this in the future.

The second area is the development of a supplier relationship management toolkit. The supplier relationship management toolkit introduces the key elements of supplier management and the value of implementing consistent and uniformed practices.

The toolkit is designed to help agencies change practices over time – wherever they are on their individual supplier relationship management journey. The toolkit is split into 3 parts.

Part 1 - Setting up the supplier relationship management programme – was launched late in 2021 – and covered what the supplier relationship management process will achieve. By reading through the material agency staff can get a useful sense of the value and outcomes to agencies a supplier relationship management programme would deliver.

Part 2 - Implementing the supplier relationship management toolkit launches in early March 2022. This part looks at who in the agency is best placed to assist in delivering identified value enhancements. It contains processes to identify those opportunities to deliver more through a contract, how to kick off meetings, engage with stakeholders and explore mutual value between supplier and agency.

Part 3 of the supplier relationship management toolkit – how the stakeholder group will collectively realise additional value – will be published at a later date.

The supplier relationship management programme and toolkit is a long-term programme and is another component of how we create the right procurement pathways and processes with empowered people, to deliver better outcomes for New Zealanders.

Supplier management toolkit and guidance for leaders

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