Strategic supplier relationship management

Where a significant contract has been placed or a contracting authority has several important contracts with a single supplier, they should consider if the supplier now qualifies as strategic at an organisational level. If so, a strategic supplier relationship management approach should be utilised. Contracting authorities should consider how they can adopt a strategic supplier relationship management approach in their organisation to drive win-win benefits. In practice, this means:

•  value creation beyond that originally contracted

•  managed engagement at an executive level

•  joint strategy development, objectives and planning

•  collaborative behaviours and working

•  relationship measurement and monitoring

•  management of aggregated performance and risk

In addition to an organisation's own management of its suppliers, the Markets and Suppliers team in the Cabinet Office is responsible for maintaining relationships with the government's strategic suppliers, to improve supplier relationships and create value. If you have contracts with government strategic suppliers, you should engage with the Markets and Suppliers team regularly to ensure that you are aligned with government's overall objectives.