2. The 4 strategies of supplier
collaboration
1. The notion that all suppliers have a strength to offer and ideas to
offer
This might be true but be careful in spending too much time
collaborating with a supplier that has offered little value to your
company over the past 5 to 10 years. With limited amounts of time
available to meet your company goals, you cannot spend the same
amount of time collaborating with each supplier.
2. To determine how much time to spend with each
supplier, complete a 4 quadrant importance matrix.
Similar to the Franklin Covey’s 4 quadrant time management
method, you need to place suppliers in quadrants including
Quadrant 1, non strategic / low dollar spend (lower left corner).
Quadrant 2, strategic / low dollar spend (upper left corner).
Quadrant 3, strategic /high dollar spend (upper right hand
corner) and Quadrant 4, non strategic / high dollar spend (lower
right hand corner).
This point is illustrated below:
Sourcing Business Solutions Bryan Eaves 2012
www.ZeroRiskSavings.com 2
3. 4 quadrant supplier collaboration
matrix
Quadrant 2 Quadrant 3
Strategic
Quadrant 1 Quadrant 4
Non Strategic
Low dollar spend High dollar spend
Sourcing Business Solutions Bryan Eaves 2012
www.ZeroRiskSavings.com 3
4. The 4 strategies of supplier
collaboration
3. Are you a small fish in a big pond?
Determine who has more to gain. While you want a
win/win outcome, if you need the supplier more than they
need your company, make sure that you collaborate with
the supplier at least once per week. Losing the supplier’s
trust might be detrimental to your company.
4. Big fish in a small pond
Conversely to #2 above, everyone will want to collaborate
with your company if you are a big fish in any company’s
pond. If you are a big fish, stay humble so that companies
will open up and collaborate more. Companies like Cisco
and Dell for example experienced high growth rates early in
their company history due to effective supplier and
customer collaboration.
Sourcing Business Solutions Bryan Eaves 2012
www.ZeroRiskSavings.com 4
