By María Jesús Sáenz, Program Director and Professor of Supply Chain Management for the MIT Global SCALE Network, and Luis Herrero, CIO and Supply Director for Leroy Merlin in Spain.
One way to identify, develop, and implement the innovations that enable supply chains to maintain high performance levels is to partner with suppliers. But how do you identify suppliers that are capable of such collaborations and possess the creative horsepower needed to push the envelope? Supplier choice is routinely based on factors such as cost, volume, and location, but the ability to engage on supply chain innovation projects is gaining in strategic importance. This is particularly the case in dynamic markets characterized by rapid technological change and shorter product life cycles that increase operational uncertainty and complexity.