Coca Cola Amatil NZ manages suppliers using a framework of processes, tools and behaviours that enable us to work closely and efficiently with our suppliers to leverage our joint capabilities and create value and innovation – commonly known as a Supplier Relationship Management (SRM) program.
The objective of a SRM program is to add value beyond the contract execution phase. This involves
- Encouraging strong relationships with our suppliers
- Encouragement of proactive communication
- Supplier review sessions to openly assess performance against set performance measures
- focus on future growth, innovation and collaboration
CCAs supplier base is segmented into four categories. These segments are based on strategic importance, risk, collaboration / innovation potential and spend – and segments and suppliers are reviewed annually.
These categories are:
- Strategic Suppliers – typically only 5 – 10 suppliers. These are usually the top suppliers with highly strategic products / services to our business that are integral to what we do. These are typically higher risk supplier relationship, but also have high collaborative value. These suppliers display initiative and ownership for identifying opportunities and driving tangible commercial outcomes.
- Preferred Suppliers – are the pillars to our organisation and play a key role in Amatil’s success. These suppliers have a proven track record of high performance. Usually medium to higher spend; higher risk and / or strategic importance and collaboration value. Multiple stakeholders. These suppliers have a specific Coca Cola Amatil contract; with set deliverables. Supplier Reviews are completed with these suppliers, although the frequency is varies depending on supplier. The focus is on long term high performance and in driving productivity initiatives to deliver effective, efficient relationships.
- Tactical Suppliers – these suppliers are still important to Coca Cola Amatil. They are the cogs that keep the wheel turning. These suppliers typically have medium to smaller spend. They are usually characterised by lower risk and lower collaborative value, but still essential to keep our business going. These suppliers should have a supply contract and annual reviews which are often led by the supplier; or the operational part of the business. The focus for these suppliers is continuing to ensure great quality, service and value as minimum requirements.
- Transactional Suppliers – these suppliers are the balance of the supply base. Often one off purchases, or only supply one small business unit. The relationship is often transaction with minimum interaction between companies. Reviews are not necessary and contracts are usually simple including the Vendor Creation Form as a minimum standard.
Supplier Forum and Awards
At the end of the year, the Procurement team hold a Supplier Forum. This event is an opportunity for our top suppliers to hear all about whats happening in our world. We go through important updates and exciting changes from each division along with any challenges we are facing. Its also an opportunity for us to share our top level plans for the next 12 months. The procurement team also take the opportunity to award our very top supplier performance of the year. Click here to find out more.