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SPAR Preferred Supplier Programme: Better together on procurement

November 19, 2020 IN THE CATEGORY: Sourcing

  • Interspar Alt Erlaa, am 31.03.2020 | (c) Johannes Brunnbauer

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At SPAR, we believe we are better together. As part of SPAR International’s successful Preferred Supplier Programme, a carefully selected set of suppliers have obtained a special status for closer cooperation with SPAR Partners worldwide. These internationally coordinated purchasing and engagement activities have a direct and positive impact on the performance of SPAR internationally across all aspects of procurement. At the SPAR International Partnership Forum on 2 December, SPAR colleagues will be able to connect with these suppliers to explore new business opportunities.

Better together
The international Preferred Supplier Programme coordinates the support for our SPAR Partners, ensuring the latest products, services, and equipment are available for use in warehouses and stores to serve our customers across the globe.

Current preferred suppliers offer the best in refrigeration, shopfitting, lighting, vehicles, customer insights, and data analysis products, among other aspects. Business development opportunities SPAR’s approach to procurement exemplifies the Better Together strategy, since it gives SPAR Partners access to the latest buying trends and developments while providing preferred suppliers access to, and knowledge of, global market developments. This approach enables both parties to optimise their business development opportunities.

Through the programme, networks are created that allow suppliers and partners to exchange opportunities, challenges, and potential solutions. As an additional incentive to the SPAR Partners, this partnership is rewarded with an annual bonus. In 2019, the bonus revenue grew by 23%, reflecting the increased commitment and ever-stronger cooperation from SPAR Partners.

Suppliers that join the Preferred Supplier Programme are generally active in manufacturing store or supply chain equipment. When making these capital investments, SPAR organisations are not only focused on the direct purchase price but on the operational efficiency delivered by the equipment. In most cases, maintenance, operating, and energy costs, as well as different financial models – such as lease or contract hire – must be taken into consideration. This requires a careful analysis of available options, wherein our preferred suppliers play a strong role.

Exceptional service levels
Last year, SPAR Partner organisations reported an increase of 9% in spending through the bonus programme compared to 2018. This turnover is reported by our suppliers and can now be traced and verified online and per quarter in our recently launched SPAR Online Bonus Portal. This reduces the manual activities required and, more importantly, creates visibility on contract development throughout the year.

The bonus claims raised on the suppliers in 2019 saw an increase of 23%, a significant growth versus 2018. Suppliers such as Zumtobel, Bizerba, Volkswagen, and HL Display form a continuous and strong foundation for the program. Their exceptional service levels and reliability have been recognised throughout the years.

The addition of supplier accounts such as Scania in the supply chain portfolio and Rational to the food-to-go portfolio has shown incredible success within our network. These forward-thinking companies actively invest in creating awareness of the latest trends, technologies, and developments in their industry so that SPAR can be best in class.

The programme also offers both partners and suppliers the opportunity to engage through physical and online events, to share information through platforms and ensure the support of SPAR International strategic projects and key account management.

This article first appeared in our quarterly magazine, Contact International.

For more on the SPAR International Partnership Forum, please see here.