10 Ways to Maximise Value Through Strategic Engagement

Supplier summits – also known as supplier days or workshops – are increasingly being used as a way for organisations to connect with their supplier base to share information, discuss strategic aims, and explore innovative solutions to particular problems.

There are numerous ways to structure and organise supplier summits, but one way to think of them is like organising your own private trade fair where suppliers come to discuss innovation issues with relevant representatives from your company.

Making a success of these events depends on getting several things right:

1. Integration with SEI initiatives

Supplier summits must function as a part of a broader Supplier-Enabled Innovation (SEI) initiative and form a key component of your supplier relationship management strategy. Simply declaring a specific day as "Innovation Day" isn’t enough. There must be a comprehensive SEI engagement program running before, after, and alongside the supplier summit.

2. Transparency is key

Clearly articulate your strategic goals and ambitions for the supplier summit. Be as open as possible with suppliers. If they don’t understand what you want to achieve or what problems you’re trying to solve, they won’t know whether to suggest minor tweaks or major innovations.

3. Focus on shared goals

A supplier summit should emphasise shared goals and innovation, rather than being a simple “show and tell” where suppliers only discuss cost-cutting measures. The vision should be collaborative, aimed at mutual benefit.

4. Build trust beforehand

Establish trust with suppliers before inviting them to the summit. Otherwise, it might feel like they’re being invited to a party for someone they hardly know, and they’re expected to bring a gift.

5. Define your approach: selective or open

Decide early whether you will cherry-pick the suppliers you want to attend or run it as an open event. This decision will be guided by the opportunities you perceive: is there a clear and narrow focus on the summit’s aim, such as new product development, quality improvement, or sustainability? Or is it a broader brainstorming session to explore various innovation avenues?

6. Clarify intellectual property terms

When you find innovations you’d like to pursue or investigate further, quickly negotiate terms regarding exclusivity, patents, licensing, free usage, or time-limited agreements. Be prepared to initiate these conversations by understanding the most appropriate intellectual property options.

7. Encourage participation through competitions

Consider running a competition as part of the supplier summit. Recognition can be a strong motivator. Ensure the judging process is transparent and fair. Avoid automatically awarding the biggest or most strategic suppliers, and don’t use the promise of an award as a negotiating tactic. Multiple categories can provide more suppliers the opportunity to showcase their capabilities.

8. Foster collaborative dialogues

Encourage collaborative discussions among suppliers. Events where groups of non-competing suppliers visit each other’s facilities to share best practices and address common problems can be highly beneficial. Facilitating conversations among suppliers can lead to integrated innovations that benefit the entire supply chain.

9. Timely follow-up

Promptly follow up with all participating suppliers, regardless of the outcome. Don’t leave them uncertain about the status of their ideas. If now isn’t the right time for their innovation, communicate that. If their ideas are under serious consideration, ensure they know this to maintain their engagement and interest.

10. Measure and evaluate success

Establish clear metrics and evaluation criteria to measure the success of the supplier summit. Define what success looks like before the event, whether it’s the number of innovative ideas generated, the quality of the solutions proposed, the level of supplier engagement, or the potential cost savings and efficiencies identified. After the event, gather feedback from both internal stakeholders and participating suppliers to understand what worked well and what could be improved. Use this data to refine future supplier summits, ensuring they continue to deliver increasing value and drive innovation.

By adhering to these strategies, supplier summits can become highly effective platforms for fostering innovation and strengthening supplier relationships.

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