Supplier Collaboration Gives Procurement Teams More Resilient Operations

Supplier relationships can shape how well procurement teams respond to operational pressure. When buyers and suppliers share information and plan together, they can improve service, manage costs and make better decisions about supply. Three examples from ProcureAbility show how that cooperation can change processes in utilities and food manufacturing.

Planning work and pricing with utility vendors

An electric utility expected a sharp rise in work as it began a program to build new powerlines. Its existing vendors, however, were weighed down by administrative work, inefficient processes and limited visibility into upcoming jobs. Those constraints made it harder for vendors to plan ahead and offer competitive pricing.

The utility asked vendors what would make planning more efficient and cost-effective. Workshops followed, bringing the teams together to identify process changes, improve operational efficiency and reduce bottlenecks. The initial idea was to negotiate lump sum rates. But vendors lacked enough information to price the work accurately, and the proposed figures were inflated.

The client and vendors then tested a flexible pricing model they agreed on together. The pilot also clarified work definitions and gave the parties access to open-book data, allowing them to build a longer-term approach using more relevant information. The source reports that the pilot improved workplan visibility and job forecasting while reducing labor hours. Afterward, the parties adopted a tiered pricing model for the longer term.

The sequence matters: the initial pricing approach ran into an information gap, and the pilot created a way to learn about the work before settling on a lasting structure. For procurement teams, the example points to the value of involving suppliers early when workloads are changing. Vendors may see planning obstacles that aren’t obvious from the buyer’s side, while shared data can help both parties assess what a workable price should cover.

Drawing on supplier expertise for pole preservation

A multi-state utility faced a different challenge involving the manufacture and preservation of wooden utility poles. The poles are treated to help them withstand environmental exposure. The long-used preservative pentachlorophenol was labelled a carcinogen globally in 2015 and phased out in the United States by the EPA in 2022, prompting the utility to reconsider its treatment process.

A vendor familiar with the existing method helped the client assess alternatives, including fiberglass, concrete and metal poles, as well as different preservation processes. It also reviewed how the utility used and placed its poles, then recommended copper naphthenate as the option that best met the client’s needs. The source says the treatment complies with applicable local, state and federal requirements.

That advice combined product knowledge with an understanding of the client’s operating conditions. Evaluating an alternative material or treatment in isolation may miss how it fits a particular network. Here, the vendor’s assessment of pole use and placement helped connect the technical choices to the utility’s requirements. Buyers facing a change in materials or processes can benefit from suppliers who explain the trade-offs and relate them to actual usage.

Changing chemical deliveries at a food manufacturer

A large food manufacturer worked with ProcureAbility and its suppliers to improve delivery and handling of specialized cleaning chemicals used to eliminate food-borne bacteria. Under the existing process, suppliers delivered different chemicals in drums and barrels, often in small quantities. The manufacturer had to store many products and combine them when needed, adding time, expense and handling work.

The teams started with a fresh review of the process. Suppliers brought their technical knowledge to the discussion, and they proposed delivering bulk chemical precursors that staff could mix on-site into the required cleaning agents. The source reports that this approach lowered costs and improved efficiency for the manufacturer.

The collaboration also covered Clean-in-Place (CIP) equipment installed on production lines. The teams examined whether particular processes would benefit from greater use of CIP or a different approach. Their analysis confirmed that the manufacturer’s existing setup was already efficient and optimized. That finding is a useful part of the example: supplier input can help identify a process change, but it can also confirm that existing equipment is performing well.

Relationships across borders

Supplier relationships also cross cultural and operational boundaries. The article cites more than $350 billion in materials, components and products imported into the United States annually, using Bureau of Economic Analysis data for April 2025. For procurement professionals working with international suppliers, understanding how partners communicate and operate can help build trust and make negotiations more productive.

Cultural awareness can help buyers understand a supplier’s perspective before discussing terms or solving a problem. That understanding may support clearer communication and help the parties find terms that work for both sides. Respecting differences can also help suppliers feel included in the relationship, supporting engagement and the exchange of ideas.

Across the three case studies, supplier involvement contributed to changes in pricing, product selection and chemical delivery. The practical takeaway is to bring key suppliers into discussions where their operating knowledge can inform the decision. Shared planning and open communication give both sides a better basis for improving service and building supply relationships that can withstand change.

Source: Bureau of Economic Analysis, “U.S. International Trade in Goods and Services, April 2025”

Joe Adamski is a managing director at ProcureAbility. He has more than 12 years of advisory and consulting experience focused on strategic procurement and large-scale transformations, including strategic sourcing, supply chain and organizational design. He previously worked in A.T. Kearney’s consumer practice and has consulted for companies across utilities, consumer goods, grocery, retail, telecom, apparel, food and beverage, and other industries. He holds a physics degree from the United States Air Force Academy and an MBA from Emory University’s Goizueta Business School.