Author: Christopher OConner

Supplier relationship management is no longer just about driving down costs, it’s about enabling innovation, resilience, and long term business value. With deep experience leading procurement across multiple industries and regions, Kenta Shimada offers a nuanced perspective on the evolving procurement landscape in Japan and the broader APAC region. In this Executive Insight, Kenta shares how strategic alignment, digital transformation, and inclusive supplier engagement are shaping the future of procurement, positioning it as a critical enabler of business growth and innovation.

 

What are the key factors you focus on to build strong relationships with suppliers?

Building strong supplier relationships depends on aligning ethical mindsets and establishing genuine rapport. Through my experience working with both Japanese and foreign owned companies, I’ve seen firsthand the importance of understanding and bridging cultural differences. I proactively share and explain our corporate culture, while also demonstrating acceptance and patience toward suppliers’ emotional responses and working styles. This openness fosters mutual respect and trust, essential ingredients for long term collaboration.

 

How do you handle conflicts or issues that arise in supplier relationships?

Japan’s consensus driven approach emphasises maintaining relationships while resolving disputes, a dynamic that becomes even more important in light of recent headlines around Japan’s economy and Subcontract Act violations, where job owners can often take a more assertive stance.

In my experience working within a facility management company, disputes with vendors around service level agreements were effectively addressed by implementing a structured Supplier Performance Management System. This clarified expectations and improved compliance. Transparency, open communication, and data driven decision making are essential to mitigating risk and ensuring sustainable procurement. This approach focuses on systemic resolution rather than temporary fixes.

Proactive risk management is also key, identifying and addressing potential issues before they escalate. When conflicts do arise, I rely on a structured framework that includes root cause analysis, collaborative problem solving, and performance based accountability.

 

How do you measure the performance and success of your supplier partnerships?

A well-run procurement function should be able to quantify the impact of its supplier relationships. Performance measurement must go beyond cost savings to include operational efficiency, service quality, and strategic value contributions, such as time to service or delivery. However, the reality is that procurement teams must first assess where they currently stand and clearly define where they want to be.

In the Corporate (Enterprise) Asset Management industry, I established a centralised P2P SOP portal and spend database to streamline procurement workflows and improve supplier accountability. To measure supplier success, I focus on a combination of operational KPIs (e.g. delivery timelines, SLA adherence), cost efficiency metrics (such as total cost of ownership reductions), and strategic value indicators (including innovation and contributions to process improvement).

In Japan and across APAC, compliance is also a critical factor. Ensuring that suppliers meet local regulatory requirements is essential for maintaining procurement integrity. While global ESG considerations are gaining importance, they remain a medium to long-term goal for many companies in Japan, which are currently more aligned with national standards.

 

How do you encourage suppliers to contribute to innovation and value creation?

A purely transactional approach to suppliers limits the potential for true value creation. I believe procurement leaders should engage suppliers as innovation partners, not just cost centers. By establishing joint business planning initiatives, suppliers can be encouraged to propose new technologies, efficiency improvements, and alternative solutions that go beyond standard service delivery.

In my experience at a facility management company, I organised and hosted procurement and sourcing events that offered strategic suppliers a platform to showcase their innovative services directly to clients. Additionally, by sharing the corporate forecast with key suppliers, I created opportunities for deeper collaboration, early engagement, and stronger long term partnerships.

 

How do you approach supplier diversity and inclusion in your SRM strategy?

Supplier diversity and inclusion are becoming increasingly vital in the APAC procurement landscape. One of my key initiatives has been to actively engage SME suppliers and local vendors, especially within Japan’s highly structured market.

In my experience, I’ve used two main methods to support supplier diversity:

A: Leveraging internal networks to introduce new suppliers and align their experience with the company’s operational needs.
B: Re-engaging suppliers after a three year gap in business relationships, which helps maintain a balanced and diversified supplier portfolio.

This approach promotes business continuity, reduces supply chain risk, and contributes to the strengthening of local economies, all while fostering inclusive growth across the supplier base.

In a rapidly shifting global landscape, procurement can no longer operate as a reactive function. For Vidya Malkani, Founder & CEO of VMC Consulting, agility, data driven insight, and proactive supplier collaboration are the keys to not only navigating disruption but driving long term value. Drawing from her extensive experience across diverse sectors, Vidya shares how she leverages deep market intelligence, strong supplier partnerships, and stakeholder alignment to build resilient, cost effective, and forward thinking procurement strategies. In this Executive Insight, she reflects on the pivotal role procurement plays in shaping business growth, managing risk, and fostering innovation—even in the face of uncertainty.

 

How do you adapt your procurement strategies to respond to changing market conditions?

Adapting to changing market conditions is all about being proactive rather than reactive. Waiting until something happens often leads to rushed, short term decisions that don’t really stick. I focus on staying ahead by using a two part strategy.

Internally, it’s about building strong market intelligence and leveraging solid data insights. This helps us spot trends early, both at a macro and micro level, so we can make smart, informed decisions before challenges arise.

Externally, I place a lot of emphasis on working closely with suppliers and business partners. When everyone’s aligned, it becomes much easier to roll out strategies that are effective and results driven. Having that trust and collaboration also helps validate our approach, especially when it’s supported by robust data.

At the end of the day, it’s about staying agile, staying informed, and making sure procurement is ready to respond effectively, no matter what the market throws our way.

 

How has agility helped you overcome supply chain disruptions?

 Agility has been key in helping me navigate and overcome supply chain disruptions. In my experience, it can either soften the blow in terms of cost and delivery impacts during crises or serve as a strong competitive advantage, and I’ve dealt with both scenarios.

During COVID, for example, lead times on critical items increased drastically. By quickly pivoting from a just in time to a just in case inventory model and exploring alternative sourcing options, we were able to mitigate the disruption. Agile thinking played a major role in executing this shift effectively.

We also used the situation as an opportunity to build robust analytics, enhance market intelligence, and establish proactive methodologies to prepare for future events. This significantly reduced the impact of subsequent global disruptions.

Beyond risk management, agility enabled us to drive business growth. By leveraging demand insights and market trends, we introduced sustainable products, not as policy mandates, but as market driven opportunities. This forward thinking approach positioned us as industry leaders and contributed to new growth avenues.

 

What strategies do you use to maintain flexibility while ensuring cost-effectiveness? 

To maintain flexibility while ensuring cost effectiveness, I focus on understanding historical purchase trends and stakeholder buying behaviours. These insights help identify spend categories that are volatile or high risk, particularly those with erratic demand or a single source supplier base, which require a more tailored approach.

My strategy begins by prioritising the most strategic and unpredictable areas of spend. Tactics like value engineering, developing supplier partnerships, distributing risk through multi source plans, and building flexibility into contract terms and conditions have proven effective. Transparent communication with suppliers fosters collaboration and responsiveness, even during uncertain times.

Internally, aligning with stakeholders on demand forecasting and key decision making points is crucial. When expectations and priorities are clearly defined, it becomes much easier to apply the right strategy. Ultimately, a balanced approach, combining proactive supplier engagement with internal alignment, helps achieve both agility and cost control.

 

How do you balance agility with long term supplier relationships?

In today’s fast moving business environment, adaptability is crucial, especially in procurement. It’s about striking the right balance between staying agile and maintaining strong supplier relationships. Just as we make quick, strategic decisions to drive results, suppliers are also navigating their own priorities and profitability. At the end of the day, these partnerships thrive on mutual value.

Long term relationships tend to last with suppliers who truly move the needle financially and where our business is equally important to them. When both sides understand their interdependence, navigating change becomes a collaborative effort, much less disruptive and far more strategic.

From my own experience, I’ve encountered situations where key suppliers struggled to keep pace during challenging or fast changing circumstances. In those moments, open and honest conversations about current roadblocks and future expectations made all the difference. They allowed us to reset, realign, and adjust plans while keeping the relationship intact. This reinforces the idea that agility and long term commitment are not mutually exclusive, they can and should go hand in hand.

 

Can you share an example of how procurement agility helped your organisation?

In a previous role, procurement agility was instrumental in transforming our capital asset sourcing strategy. We were dealing with inconsistent stakeholder purchasing behaviours and a fragmented local supplier base, which led to inefficiencies and increased risk exposure.

Embracing an agile mindset, we conducted a deep dive analysis of 10 years’ worth of spend and asset lifecycle data. This allowed us to identify preferred brands, risk profiles, and total cost of ownership across asset categories. Armed with this insight, we built a compelling business case for change and secured stakeholder buy in.

We pivoted from a decentralised, dealer level sourcing model to a more agile, direct engagement model with key manufacturers. This shift enabled us to negotiate comprehensive contracts that included cost modeling, volume based rebates, R&D collaboration, and lifecycle support.

As a result, we reduced procurement lead times by 70% and improved cost efficiency by 40%. More importantly, this agile approach gave us the flexibility to pivot between suppliers during market disruptions without compromising quality or service continuity, boosting organisational resilience and long term value.

As Deputy Director of Procurement at the British High Commission in Pretoria, Ian Robertson brings a grounded, proactive approach to procurement, one shaped by his extensive public sector experience across the African continent. In this Executive Insight, Ian shares how agility has become a cornerstone of his procurement philosophy, enabling him and his teams to navigate complex geopolitical events, supply chain disruptions, and regulatory constraints. From building resilient supplier partnerships to leveraging technology and scenario planning, Ian outlines how procurement must evolve from a transactional function to a strategic, forward thinking force within the organisation, especially in a world where change is constant and pressure is high.

How do you adapt your procurement strategies to respond to changing market conditions?

To adapt to changing market conditions, I focus on three main areas that are directly influenced by the ever evolving landscape:

1. Build Strategic Relationships: Strengthening partnerships with key suppliers and fostering collaborative relationships helps create resilience in uncertain times.
   
2. Risk Management: Developing a strict and robust risk management plan, including scenario planning for disruptions or regional instability, offers a proactive way to respond to potential events.
   
3. Technology and AI: There are excellent tools available today that address the risks associated with market and supply chain uncertainty. By integrating these technologies into the procurement lifecycle, we can manage these risks more effectively.
   

Ultimately, there are many strategies that can be implemented within a procurement function to respond to changing conditions. The key is to identify the factors most relevant to your organisation and operating environment.

How has agility helped you overcome supply chain disruptions?

Very early in my procurement career, I learned that agility is the key to success in this field. If you’re not able to be agile, especially when facing challenges like supply chain disruptions, you won’t succeed.

The key to agility is putting yourself and your organisation in a proactive state, rather than reacting after the fact. This helps create a resilient supply chain.

Agility has enabled me and my teams to continuously adapt, overcome obstacles, and support the organisation even in the most turbulent times. It has also given me the opportunity to demonstrate that procurement is no longer a backroom function, but a key player and strategic contributor within the organisation.

What strategies do you use to maintain flexibility while ensuring cost effectiveness?

This is a balancing act that requires careful planning, adaptive strategies, and continuous monitoring.

Some strategies I like to incorporate into my teams include:

1. Strong Negotiation – Having an effective negotiation strategy, led by a well equipped team, provides the organisation with a leveraged approach to procurement. This ensures not only cost savings but also favourable contractual terms that benefit both the supplier and the business.
   
2. Inventory Management – Implementing an agile inventory system allows for quick adjustments based on changing circumstances. Techniques like Just in Time (JIT) or Just in Case (JIC) can be applied depending on the environment.
   
3. Technology and AI – I consistently champion the use of technology and AI in procurement strategies, as they are integral to the function. The right software helps create not only an efficient and effective supply chain, but also a resilient one.
   
4. Strategic Sourcing – Continuously reviewing and refining sourcing strategies is vital. This includes shifting focus from list prices to a Total Cost of Ownership (TCO) model to gain a more comprehensive view of value.
   

There are many strategies that can be used, and others are often integrated into this model to adapt to evolving environments. The key is to continuously monitor performance and remain flexible, adjusting as needed to maintain a balance between cost effectiveness and operational agility.

How do you balance agility with long term supplier relationships?

The key is to encourage and foster strong partnerships that are both flexible and stable relationships in which both parties feel the arrangement positively supports their business.

Some elements I incorporate into strategic supplier relationships include:

1. Regular Communication – Meeting regularly with suppliers and maintaining transparency helps them understand the changing needs and challenges our organisation is facing. This open dialogue encourages quicker adaptations and reduces the risk of misunderstandings.
   
2. Flexible Contract Terms – During negotiations, I advocate for contracts that include mutually beneficial flexibility, such as provisions for price renegotiations, volume adjustments, or modified KPIs. A well structured contract offers stability while allowing room for change when needed.
   
3. Collaborative, Not Transactional, Relationships – Building collaborative relationships rather than purely transactional ones allows both parties to identify issues early and jointly develop solutions. This makes it easier to respond to market shifts and evolving requirements.
   

By applying these strategies, we can remain agile and responsive to market changes while maintaining and strengthening long term strategic partnerships.

Can you share an example of how procurement agility helped your organisation?

Procurement agility has been instrumental in helping various organisations I’ve had the privilege to work with. It has allowed me to navigate challenges and seize opportunities in an ever changing market environment.

In my current role with the Foreign, Commonwealth & Development Office (FCDO), where I am responsible for procurement across the African continent, agility has been crucial. While public sector procurement is governed by strict and often rigid regulations, applying procurement agility, within those regulatory frameworks and using the strategies I’ve mentioned previously, has enabled our team to successfully navigate several complex supply chain disruptions over the past few months.

Examples include the Red Sea crisis, conflict zones in the Democratic Republic of Congo, the Mozambique election crisis, and the impact of various cyclones. These were highly unique and challenging situations that required maintaining supply continuity and cost effectiveness during a period of budget constraints.

If we had not embraced an agile approach and proactively managed these risks, we would not have been able to support or deliver in these critical and fast evolving scenarios.

As Procurement Director at Emerson, Samer Haddad brings a powerful combination of analytical precision, digital foresight, and pragmatic leadership to the evolving world of procurement. In this Executive Insight interview, he explores how AI, advanced analytics, and predictive modelling are redefining procurement’s role, from driving smarter supplier performance to enabling proactive risk mitigation. With a keen focus on data integrity, cross-functional collaboration, and strategic alignment, Samer shares how procurement leaders can balance emerging technologies with human innovation to create resilient, agile, and forward-looking procurement functions.

 

How are you leveraging AI and advanced analytics to improve procurement decisions?

I leverage AI and advanced analytics extensively to enhance procurement decisions. These technologies provide a bird’s eye view, sometimes even feeling like superpowers, turning complex data into clear charts and actionable trends. Instead of manually sifting through vast datasets, I now spend my time strategically interpreting these insights.

While AI tools are not yet universally prevalent in procurement, I personally use AI driven analytics extensively in areas such as evaluating the content I create, further confirming their potential and future importance. AI rapidly processes and analyses large volumes of data, directly informing procurement strategies through realistic predictive analytics. This enables anticipation of market trends, supplier behavior, and price fluctuations, significantly improving negotiation outcomes and business agility.

AI’s forecasting capabilities also empower real time inventory management, optimise ordering schedules, and proactively mitigate risks. Ultimately, these advanced tools shift the focus from operational execution to strategic management, enhancing efficiency, reducing costs, and allowing those who leverage AI to focus on human innovation. All of this is aligned with long term organisational and cross departmental objectives.

What data do you prioritise when evaluating supplier performance?

Before evaluating supplier performance, I always advise businesses to first understand how their data is collected, whether it’s generated by people, systems, or a combination of both, and to be clear about its intended use. Assuming that clarity is established, I prioritise data that reflects supplier reliability, quality, cost efficiency, and, where available, sustainability practices.

Key performance metrics include fundamental KPIs such as on time delivery rates, product defect rates, returns, and adherence to contractual terms. I also assess the effectiveness of suppliers’ communication, an area that is critical but often less data driven.

Sustainability indicators, though sometimes difficult to obtain at an individual supplier level, are increasingly important and should not be overlooked. These include environmental compliance, carbon footprint, and social responsibility scores.

In addition, applying advanced analytics to historical performance data is essential for proactively identifying and addressing potential risks or reliability issues. This is also where AI plays a growing role. By leveraging AI, we can further expand our evaluation capacity, using it to extract insights from reports, audits, and correspondence. While these are primarily text based today, AI may soon be able to quantify this data into meaningful metrics, such as sentiment scores, enabling even more comprehensive and consistent supplier assessments.

How has AI helped you automate and optimise certain parts of your procurement, such as risk mitigation in your supply chain?

AI has not yet extensively enhanced my procurement processes, and I believe that, globally, adoption is still limited. However, the potential is truly transformative. Despite current challenges such as corporate AI readiness and security concerns, we are only at the early stages of AI adoption.

The future impact of AI on procurement, especially in automating and optimising risk mitigation across the supply chain, is revolutionary. AI driven tools will soon be able to systematically monitor vast streams of global market data, geopolitical events, material movements, existing contracts, audits, and even potentially email communications. Combined with historical supplier performance, these tools will proactively identify risks in ways we’ve never been able to before.

AI powered analytics will also help pinpoint vulnerabilities, suggest contingency plans, and enable rapid responses. By automating assessments that once took weeks or months, AI enables proactive, rather than reactive, risk management, significantly reducing the impact of supply chain disruptions.

Furthermore, by freeing up resources, AI allows procurement teams to focus on more strategic initiatives, such as building supplier relationships and driving innovation. In this way, AI will transform procurement into a more resilient, responsive, and strategically agile function, capable of managing risks more effectively across the entire supply chain.

How do you ensure data accuracy and reliability in your procurement process?

As I hinted when discussing supplier performance analysis, ensuring data accuracy and reliability in procurement is critical. It often involves addressing a common corporate dilemma: needing accurate data to justify system upgrades, while those very upgrades are required to improve data accuracy, the classic chicken and egg problem.

I approach this systematically, combining technology, structured processes, and consistent verification methods, including both system driven and manual checkpoints, especially when working with legacy systems. Ideally, automated data validation and cleansing tools should swiftly identify and correct inaccuracies, helping to maintain data integrity.

Standardised data governance practices, clear documentation, and well defined roles and responsibilities further reinforce accuracy. Regular audits and comprehensive training promote accountability, encourage meticulous data management, and support continuous improvement.

Even with automated systems, teams must maintain critical thinking and continue to question the data. Cross functional reviews and stakeholder validations ensure alignment and reinforce confidence in procurement analytics. This rigorous approach significantly reduces risk, streamlines operations, and enhances the strategic impact of procurement decisions, keeping them closely aligned with broader organisational goals.

Can you share examples of how predictive analytics has improved procurement outcomes?

Predictive analytics significantly improves procurement outcomes through proactive decision making, precise demand forecasting, and efficient risk management. Even basic predictive models, analysing backlogs, historical trends, confirmed orders, and high probability workloads, enable accurate forecasting of team readiness and resource requirements.

This approach optimises operational readiness, maintains cost efficiency throughout the source to pay cycle, and ensures consistent organisational preparedness year after year. Predictive analytics also facilitates early detection of supplier performance issues, allowing for preemptive interventions that mitigate disruptions effectively.

Additionally, straightforward predictive analyses help forecast commodity pricing and annual inflation rates, supporting more robust cost estimations and strengthening supplier negotiations, ultimately reducing procurement costs.

By enhancing efficiency, cost management, and strategic preparedness, predictive analytics, at all stages of maturity, demonstrably strengthens procurement resilience and delivers measurable improvements in performance and strategic alignment.

 

In today’s increasingly complex procurement landscape, data has evolved from a support function into a true strategic enabler. Drawing on his experience leading procurement analytics and operational excellence across multiple markets, Angelos Gregoriades, former Head of Procurement Excellence & Compliance at Coca-Cola Hellenic Bottling Company, shares how structured data, fit for purpose tools, and a commercially minded approach can drive meaningful value. From spend transparency and supplier evaluation to risk mitigation, sustainability insights, and early stage predictive analytics, Angelos reflects on how embedding analytics into core procurement activities enhances decision making, strengthens operational performance, and supports long term strategic alignment.

 

How are you leveraging advanced analytics to improve procurement decisions?

Advanced analytics played a critical role in optimising procurement decisions by enhancing spend visibility, monitoring supplier performance, and identifying cost saving opportunities.

With the implementation of SAP Ariba, we leveraged its capabilities to structure and enrich procurement spend data, making it more actionable. By applying predefined rules for data cleansing and consolidation, we extracted key insights that improved visibility and revealed opportunities for cost optimisation and supply base consolidation. Additionally, we developed Power BI solutions to visualise spending and procurement KPIs, enabling senior management to better understand trends, monitor progress, and take informed action.

Beyond Ariba, custom built analytics tools supported a wide range of strategic procurement decisions. Excel based solutions provided flexible and user-friendly insights for managers handling complex tenders, while additional dashboards supported areas such as savings tracking, RM&P cost planning, sustainability analytics, and performance monitoring.

During the COVID period, procurement teams were tasked with renegotiating high value contracts. My team developed tools to analyse, track, and report the resulting savings, delivering tangible value and contributing to company profitability.

By integrating multiple data sources and maintaining a strong focus on data accuracy, we elevated procurement’s role in decision making, cost efficiency, and overall business effectiveness.

 

What data do you prioritise when evaluating supplier performance?

Supplier performance evaluation was a structured, data driven process focused on strategic and critical suppliers. Key performance areas included sustainability, quality of service and products, supplier agility, joint business planning, delivery performance, price competitiveness, reliability, and technical capabilities. Each area was weighted based on category specific priorities and procurement’s strategic goals.

We conducted annual internal evaluations involving both procurement and key business stakeholders, complemented by external sources such as sustainability assessments, financial risk data, and third party evaluations. A dedicated evaluation platform enabled structured assessments through digital questionnaires, automated scoring, and progress tracking dashboards.

This process helped identify underperforming suppliers and trigger corrective actions, such as renegotiations, supplier capability building, or transitioning to alternative suppliers. Evaluation results also informed future sourcing strategies, reinforcing continuous improvement.

Beyond the annual exercise, insights from supplier performance evaluation supported broader procurement initiatives such as supplier segmentation, compliance monitoring, contingency planning, and supply risk mitigation. By combining internal and external data, we ensured that supplier partnerships aligned with business needs, ESG priorities, and long term performance expectations.

 

How has data analytics helped you mitigate risks in your supply chain?

Data analytics played a vital role in identifying and mitigating supply chain risks by providing transparency across supplier performance, financial stability, and operational reliability. Although we did not have a dedicated risk management system in place, my team developed custom built tools to support risk identification and monitoring, while collaborating with IT to explore longer term digital solutions.

We relied on a combination of internal risk assessments and external intelligence, such as financial ratings and sustainability data, to flag suppliers with potential vulnerabilities. These efforts were supplemented by periodic reviews, including category level risk mapping conducted by strategic procurement managers.

A critical focus area was ensuring supply continuity and preventing disruptions. Procurement maintained clear KPIs related to business continuity, and we implemented contingency plans for high risk categories. This included identifying secondary suppliers, developing backup sourcing options, and collaborating with stakeholders to assess feasibility and potential exposure.

By combining structured risk monitoring with practical mitigation planning, we strengthened our ability to anticipate and manage disruptions, enhancing procurement’s contribution to business resilience and agility.

 

How do you ensure data accuracy and reliability in your procurement process?

Ensuring data accuracy and reliability in procurement was a top priority, given its direct impact on reporting quality, spend visibility, and strategic decision making. Our core data sources were SAP (ERP) and SAP Ariba, from which we retrieved and validated procurement data, including spend details, purchase orders, payment terms, contract status, and supplier hierarchies.

To enhance consistency, my team developed internal validation processes and leveraged external databases to structure supplier groupings, ensuring accurate classification. Month end data controls refined the information before it was published in dashboards and reports. We also implemented automated enrichment rules for spend categorisation, reducing manual corrections and improving reporting quality.

Aligned with internal control protocols, we used SAP BW reports to validate procurement data shared in external communications and corporate disclosures, maintaining complete audit records to support compliance. My team played a key role in ensuring this data was accurate and aligned with governance standards.

Beyond validation, my focus was on transforming data into insight. I encouraged my team not only to deliver reliable reports but to highlight key messages, prepare executive summaries, and consistently challenge the data to ensure it drives action. This approach positioned procurement analytics as a strategic enabler of business impact.

 

Can you share examples of how predictive analytics has improved procurement outcomes?

While predictive analytics was not yet fully implemented, we actively explored its potential to enhance procurement decision making. One promising area was the use of AI and RPA to automate PO classification, improving the accuracy of spend categorisation and reducing manual effort. Although full scale deployment was still in progress, the business case for such tools was clear.

In the meantime, we relied on historical spend patterns, supplier performance trends, and forward looking scenarios to anticipate risks and guide sourcing decisions. These insights supported more effective supplier negotiations, savings planning, and proactive alignment with business needs.

Looking ahead, predictive analytics holds significant promise. By combining machine learning with real time data, procurement functions can shift from reactive problem solving to proactive opportunity creation. My vision was to embed these capabilities into procurement strategy, enabling a more agile, resilient, and insight driven approach to supplier management, risk mitigation, and cost optimisation.
Our early efforts in this space, paired with strong analytics foundations, ensured that procurement was well positioned to embrace future digital transformation and continue delivering value to the business.

As a senior procurement leader in the pharmaceutical sector, Neslihan Gentilleau brings a structured yet forward-thinking approach to supplier relationship management. With a focus on trust, long-term collaboration, and performance measurement, she outlines how procurement can drive not just operational excellence, but strategic value.

In this Executive Insight, Neslihan shares her philosophy on building resilient supplier partnerships, encouraging co-innovation, integrating diversity and inclusion into SRM, and navigating challenges with clarity and empathy. Her experience illustrates that procurement is no longer just about cost control — it’s about fostering partnerships that are aligned, agile, and purpose-driven.

 

What are the key factors you focus on to build strong relationships with suppliers?

It’s a matrix of key factors: trust, collaboration, and effective communication.

Trust and clarity are the foundation of any long term partnership. From the very first sourcing or RFI stage, it’s important to stay open, consistent, and honest about expectations, challenges, and opportunities. Before any activity begins, new partners must be thoroughly assessed across multiple areas: finance, quality, legal, IT security, and more. This lays the first stone on the path to trust. It also legitimises the relationship with internal stakeholders and secures alignment across all support functions.

Collaboration and relationship investment are equally essential.

• Fair treatment: Suppliers should be seen as valued partners, not just as cost cutting levers. A win-win relationship is key. Fair financial terms create the foundation for expecting quality, timely delivery, and priority alignment.
  
• Mutual goals: Aligning on shared objectives, such as quality standards, delivery timelines, and sustainability commitments, strengthens the partnership and reinforces collaboration.
  

Effective communication is what nourishes the relationship over time.

• Build personal connections beyond purely transactional or operational discussions.
  
• Hold regular catch ups, set clear KPIs, and provide performance feedback.
  
• Offer constructive feedback and remain open to their input, this helps both sides grow and improve together.
  

And finally, innovation. Encourage suppliers to innovate and co-create solutions to challenges, or even unlock new opportunities together. Long term supplier relationships thrive on continuous improvement, shared vision, and mutual respect.

 

How do you handle conflicts or issues that arise in supplier relationships?

Being thoughtful and adopting a collaborative approach are essential when navigating conflict. Throughout the process, the focus should remain clear: find an acceptable solution and a common ground.

Step 1: Internal Investigation
Start by gaining a full understanding of the issue. Conduct an internal investigation and work with all relevant stakeholders to get a 360° view. Identify the root cause and assess any internal dependencies. Taking the time to understand the full context allows you to address the core issue more effectively.

Step 2: Open Dialogue with the Supplier
Approach the supplier with transparency and facts, outlining the business impact clearly. Maintain a calm, professional, and constructive tone, avoid blaming or threatening escalation to legal or senior management unless it’s a last resort. It’s also essential to listen actively to the supplier’s perspective. This creates space for mutual understanding and helps identify potential paths to resolution.

Once a common ground is found through negotiation, clearly document the agreed outcomes: milestones, responsibilities, and accountabilities.

Step 3: Lessons Learned
Every conflict is an opportunity to improve. Use the experience to review and adapt processes, contract terms, or KPI mechanisms. If the supplier consistently fails to align with long term goals despite efforts to resolve issues, consider identifying an alternative partner.

 

How do you measure the performance and success of your supplier partnerships?

SPRM – Supplier Performance and Relationship Management, has always been my north star as a procurement leader. Having an appropriate and mature SPRM program is essential to ensure that supplier performance aligns with three key priorities:

1. Operational requirements
   
2. Strategic business goals
   
3. Long term procurement strategy
   

Before any engagement begins, during the RFX phase, expectations, stage gates, and milestones are clearly defined and agreed upon by both parties.

Here are some of the key metrics and evaluation methods we use in the pharmaceutical sector:

Quality of Deliverables: Compliance with GxP regulations and adherence to internal quality standards are critical. We track defect rates, returns, and complaints to assess supplier performance.

On Time Delivery: We monitor adherence to agreed delivery schedules. Any delays and their operational impact are reviewed and discussed during Quarterly Business Reviews (QBRs).

Cost Control and Financial Performance: Transparent and regular financial reporting is essential. We verify consistency with agreed pricing and budget expectations and assess the supplier’s contributions to cost saving initiatives.

Flexibility, Collaboration, and Problem Solving: We assess how effectively the supplier responds to changing requirements or unforeseen situations. Key elements include communication quality, responsiveness, and the ability to manage risks and feedback constructively.

Innovation and Value Creation: We evaluate the supplier’s ability to contribute to process improvements, new product ideas, or other competitive advantages.

Internal Stakeholder Feedback: Post project surveys are used to gather insights from internal customers and cross functional partners. Their input is vital to measuring overall satisfaction and partnership health.

A strong SPRM framework ensures that supplier relationships are not only monitored but continuously improved in alignment with broader organisational objectives.

 

How do you encourage suppliers to contribute to innovation and value creation?

Innovation in Life Sciences is critical. Whether it’s accessing state of the art equipment or gaining early access to pioneering tools and services, it’s essential to actively encourage suppliers to contribute to our innovation ambitions. With strategic suppliers and long term partners, we build a shared commitment to collective innovation and value creation.

Here are some of the principles and strategies we use:

Involve Suppliers in Strategic Planning
We share long term goals and project roadmaps early, inviting suppliers to bring their expertise to the table. This creates opportunities to brainstorm ideas, assess feasibility, and explore synergies across multiple projects. This approach moves the relationship beyond vendor status, they become true partners in our innovation journey.

Facilitate and Nurture Collaboration

We promote technical co-innovation, giving suppliers access to end users for real time feedback. In some cases, we’ve acted as a reference site for new technologies, co-developing and testing prototypes with equipment manufacturers. Our operational teams provide input and suggestions that help fine tune the final solutions. This encourages suppliers to take calculated risks and propose fit for purpose innovations.

Invest in Supplier Growth (When Applicable)

We’ve developed collaboration agreements where we co-invest in pilot projects. In other cases, we’ve helped promote supplier innovations by publicly recognising joint contributions or offering live demos of their platforms to potential customers. These initiatives strengthen the partnership and incentivise suppliers to bring their best ideas forward.

By embedding innovation into the partnership framework, we turn suppliers into co-creators of value, helping both sides push boundaries and stay ahead in a competitive, fast evolving landscape.

 

How do you approach supplier diversity and inclusion in your SRM strategy?

Approaching supplier diversity and inclusion (D&I) within the pharmaceutical industry’s SRM strategy is both essential and challenging. The sector’s highly regulated nature and its emphasis on innovation in niche markets require a structured, deliberate, and measurable approach. While supplier D&I can be more readily applied to commodity categories, it becomes more complex when dealing with life sciences specific goods and services.

Our approach begins internally, by securing endorsement and support from the Executive Committee (ExCom). We integrate broader societal goals into our CSR framework, building key pillars such as the one I led, titled “Trusted Supply Chain.”

To establish realistic objectives and a five year roadmap, we conducted comprehensive market research to benchmark industry best practices. This included insights from major pharmaceutical companies and peer collaboration with ESG leaders.

Key steps we’ve taken to integrate D&I into our SRM strategy include:

Assessing the Existing Supplier Base – We evaluate our current preferred suppliers to identify potential risks, representation gaps, and opportunities for greater inclusion.

Policy Integration – D&I principles are embedded into our Code of Conduct and Procurement Policies, ensuring suppliers are aware of and aligned with our standards.

Procurement Guideline Updates – We’ve revised our procurement guidelines to prioritise diverse suppliers and include D&I criteria directly in the selection and onboarding processes.

Strategic Partnerships with Large Suppliers – We partner with major suppliers who actively promote diversity and maintain measurable D&I commitments, reinforcing alignment with our values.

Embedding ESG and D&I in Evaluation Criteria – We assess suppliers based on ESG scores, adherence to frameworks such as the UN Global Compact, and their demonstrated long term commitment to diversity.

By embedding D&I into supplier relationship management, we not only support broader societal objectives but also strengthen the resilience, innovation capacity, and ethical foundation of our supply chain.