The fourth common error we’ve observed is inadvertently damaging supplier relationships in pursuit of cost optimization. Overemphasizing transactional relationships and neglecting the importance of long-term, strategic partnerships can hinder a supply chain’s resilience, and compromise equity value. To avoid this mistake, I’ve outlined recommendations below.

1. Meet with Top Suppliers: Conduct c-level meetings with top suppliers in the first 100 days. Understand their capabilities and challenges, share vision and goals, and cultivate strong, collaborative relationships.
2. Share Information: Open and transparent communication is vital. Share information about demand forecasts, savings targets, and strategic plans to enable suppliers to better align with your objectives.
3. Collaborate on Innovation: Work with suppliers to identify opportunities for innovation and continuous improvement. Integrated product development and cost-saving initiatives can yield substantial benefits.