Expectations of Suppliers
Innovation and excellence are at the core of everything we do. We work closely with our suppliers to continually improve performance and strive for mutual growth.
The objective of supplier management 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
Coca-Cola Amatil's 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 –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. They have a proven track record of high performance and an excellent reputation for quality goods and services. The focus is on long term high performance and in driving productivity initiatives to deliver effective, efficient relationships.
- 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 Maintenance Form as a minimum standard.