Case study: optimising partnerships with supplier relationship management

In the ever-evolving procurement and supplier engagement landscape, North West London Procurement Services (NWLPS) has emerged as a frontrunner, pioneering a comprehensive Supplier Relationship Management (SRM) framework. This strategic initiative, meticulously aligned with the organisation's 2022 - 2025 “Stronger Together” strategy, aimed to strengthen partnerships, maximise value, and stimulate innovation with key suppliers. This case study explores the in-depth design, execution, and impact of NWLPS's SRM framework, outlining the key components and phases that propelled its success.

Why Supplier Relationship Management (SRM)?

In the past, NWLPS viewed suppliers through a narrow procurement lens, focusing solely on the transactional outcome of contracts, not on building long-term relationships with their suppliers. However, NWLPS recognised that strategic suppliers are increasingly crucial in enabling service user satisfaction and care delivery. It became clear that these partnerships needed to evolve beyond mere procurement into deeper, outcome-driven relationships capable of unlocking shared goals, driving innovation, and mitigating ecosystem risks.

Without effective SRM capabilities, exchanges were happening in isolation, with no comprehensive view of strategic supplier performance, continuity planning, or the ability to accelerate key growth initiatives. Formalising an SRM approach addresses these gaps by establishing a structured process for nurturing supplier relationships in alignment with the overall business strategy.

Project Objectives

At the heart of NWLPS SRM framework lies a set of well-defined objectives that aim to transform supplier relationships into strategic partnerships that drive business growth and operational excellence. This approach to SRM extends beyond transactional engagements to enable NWLPS to maximise the value derived from supplier relationships.

• Strengthening partnerships: Fostering mutually beneficial collaborations to maximise value.
• Enhancing innovation: Pursuing strategic collaboration with suppliers to develop cutting-edge solutions.
• Optimising cost efficiency: Leveraging economies of scale and streamlining processes to reduce expenditures.
• Improving operational efficiency: Fostering transparent communication to eliminate inefficiencies.

The Anatomy of NWLPS's SRM Framework

The SRM framework developed by NWLPS encompasses four key components:

• Supplier Segmentation: Effective segmentation facilitates decision-making and prioritisation of resources for improved scalability and flexibility.
• Relationship Management: Cultivating mutually beneficial partnerships through proactive engagement, collaboration and active communication.
• Supplier Performance Management: Monitor and develop their suppliers to ensure good service at the optimum total cost of ownership.
• Supplier Risk Management: Implement processes to monitor, evaluate, and mitigate supplier risks.

SRM Skills Academy

61% of Chief Procurement Officers highlight "Increasing level of supplier collaboration" as their top priority for 2023, (Deloitte, 2023).

A crucial pillar of the SRM framework is developing the skills and mindset across NWLPS to manage strategic supplier relationships effectively. To enable this, a dedicated SRM Academy has been designed to focus on strengthening SRM within the Category Divisions.

World Commerce & Contracting (WorldCC) SRM Certification

The development of a skilled team to steward long-term supplier partnerships is key to extracting and expanding the value delivered through the SRM approach. NWLPS opted to enrol staff on the WorldCC SRM Certification programs; the only industry-recognised accredited programs to provide a comprehensive, relevant, and flexible learning experience. The Certifications enabled NWLPS staff to build competencies to:

• Structure and lead collaborative supplier engagements
• Employ value-based supplier segmentation
• Set clear performance expectations
• Govern for risk and continuity Identify and execute innovation opportunities
• Demonstrate critical problem-solving and conflict resolution
• Understand data analytics to inform SRM
• Utilise digital tools and AI enablement Consider sustainable procurement best practices Improve contract and performance optimization

Lee Jackson, Managing Director – North West London Procurement Services commented, “The WorldCC SRM Certification ensures consistency in our supplier practices and provides our team with more knowledge to effectively manage supplier relationships. It serves as a tool for enhancing our procurement outcomes which in turn helps our patients at the NHS and local communities.”

Achievements to date

Since embarking on its SRM journey, NWLPS has achieved significant milestones, laying a solid foundation for strong, value-driven supplier relationships, from within its Manage & Enable division, led by Lynda Hopkins, Procurement Excellence Director. From identifying key strategic partners to establishing robust performance metrics and fostering innovation, the NWLPS team has made consistent progress in transforming its supplier ecosystem.

To download the case study in full please visit: https://www.worldcc.com/Portals/IACCM/Files/Case Study - NHS NWLPS.pdf