Skip to content

6 Best Practices to Increase Supply Chain Value

Supply Chain & Commercial Contractual Agreement

Estimated reading time: 5 minutes

Supply Chain & Commercial Contractual Agreement

Supply Chain & Commercial Contractual Agreement


Supply chain management (SCM) is the broad range of activities required to plan, control and execute a product’s flow, from acquiring raw materials and production through distribution to the final customer, in the most streamlined and cost-effective way possible.

SCM involves the integrated planning and execution of processes to optimise the flow of materials, information and financial capital in the supply chain. This includes areas such as demand planning, sourcing, production, inventory management and storage, logistics, and more. With the pace of modern international business increasing, competitive advantage is no longer assured. Having a strong competitive advantage is needed, as the markets and technology is constantly evolving.

One way to achieve a sustainable competitive advantage is through the effective management of the supply chain value. Supply chain management is an expansive task that involves every partner in the chain, from suppliers to manufacturers, to run well. Because of this, effective supply chain management also requires change management, collaboration and risk management to create alignment and communication between all the entities.

Here are 6 best practices to increase supply chain value.

  • Strategic sourcing
  • Contract management
  • Operational procurement
  • Procurement intelligence
  • Supplier management


Strategic Sourcing

  • Total cost levers
  • Cross-functional team approach
  • Rigorous tracking of generated savings

Contract Management

  • Established contract management teams
  • Defined contract management plans
  • Active performance and transition management

Operational Procurement

  • Documented policies and procedures
  • End-to-end process visibility and transparency
  • Standardization and automation

Procurement Intelligence

  • Defined KPIs and metrics
  • Enterprise tracking and Reporting
  • Data accuracy and reliability

Supplier Management

  • Formalized supplier management program
  • Dedicated supplier account teams
  • Aligned KPIs
  • Periodic supplier audits


To learn more about increasing value in supply chain and procurement, KPMG has provided a report intended to cover the following topics: Stretch of the function, Need for doing more, Realizing latent supply chain value, Applying structure approaches for sustainable value, and lastly Ensuring the supply chain is a strategic enabler. Download to read more about how to elevate the supply chain to a strategic organisational player, through ways such as being reactive, tactical and seeing the supply chain capability as a competitive advantage. 


KPMG Increasing Supply Chain Value - Cover

Click below to download your free report “Increasing Value In Supply Chain and Procurement”









Supply Chain & Commercial Contractual Agreement is a 3-day course held from 25-27 November 2019 (Kuala Lumpur). The course has been specifically created to empower and add value to the delegate through the understanding of how the relationship between commercial contracts and the management of the supply chain is fundamental in enabling streamlined and efficient processes and procedures within areas such as procurement; inventory management; lead time management and stakeholder management. This programme is designed to be an immersive experience with emphasis on open continuous discussion; problem solving and class exercises.

HTML Snippets Powered By :