Procurement has evolved. From chasing quotes on the phone to implementing full source-to-contract platforms, the function has been through a serious transformation. But even as teams digitise processes and invest in better data, one element still lags behind in many strategies: supplier engagement.

We talk a lot about supplier management, risk mitigation and cost control but engagement tends to fall by the wayside. Resource has a huge impact on supplier relationship management, Procurement are asked to do more with less making it difficult to dedicate time to establishing and nurturing relationships. Relationships are weaker, innovation stalls and the supply chain becomes less resilient. In short, supplier engagement isn’t just a nice-to-have, it’s a strategic necessity.

What Do We Mean by Supplier Engagement?

Supplier engagement goes beyond onboarding or performance scorecards. It’s about creating two-way communication, aligning on goals and working in partnership with suppliers to drive value on both sides. It involves transparency, trust and ongoing collaboration. It’s the difference between managing a supplier and partnering with one.

Why Engagement Matters Now More Than Ever

Supplier engagement has always mattered, but recent events have thrown its importance into sharper relief. According to Deloitte’s 2023 Global Chief Procurement Officer Survey, 61% of CPOs say that supplier collaboration is critical to driving value. Similarly, a 2023 CIPS report noted that building stronger supplier relationships is a top priority for procurement leaders looking to improve resilience.

With global supply chains under pressure from geopolitical disruption, inflation and ESG demands, suppliers are being more selective about who they work with. Your business might not be their biggest customer. If your processes are overly complicated or if you’re seen as transactional, you could quickly slip down the priority list.

On the flip side, organisations who invest in engagement tend to enjoy better service, early access to innovation and more flexibility when the unexpected happens. In a constrained environment, suppliers will go the extra mile for the customers they trust.

Common Engagement Pitfalls

  • Too many touchpoints: Suppliers are often bombarded with emails from different departments. Some suppliers receive onboarding instructions from procurement, compliance, finance and legal separately. It’s no wonder things fall through the cracks.
  • Lack of visibility: Suppliers are left in the dark about what happens after they submit documents or respond to a tender. This creates frustration and, potentially, a reluctance to engage in future opportunities.
  • One-way communication: Procurement teams may push out requests and scorecards but rarely seek input or feedback. Engagement is a two-way street and it can’t be driven by procurement alone.
  • Generic processes: Every supplier is treated the same, regardless of the criticality of the service they provide. Strategic suppliers need more tailored communication and deeper collaboration.

The Business Case for Better Engagement

There are hard and soft benefits to improving supplier engagement. Let’s start with the tangible:

  • Risk reduction: Engaged suppliers are more likely to alert you to potential issues early, whether that’s financial instability, changes in ownership or resource constraints.
  • Innovation: Suppliers often have insights that can help you streamline processes, reduce costs or create better outcomes for your end customers.
  • Efficiency: A smoother, more transparent supplier experience reduces the time spent chasing documents or clarifying expectations – Benefiting both sides.
  • Resilience: Collaborative relationships are more adaptable. In times of crisis, you want suppliers who will pick up the phone, not go silent.

Then there are the cultural and reputational gains. Engaged suppliers speak highly of your organisation. That improves your standing in the market and makes it easier to attract new partners. 

In today’s climate, where supplier due diligence and responsible sourcing are under intense scrutiny, having engaged suppliers who share your values can also help you stay ahead of regulatory compliance. Engagement becomes a lever not just for operational success but for brand protection and sustainability leadership.

How to Improve Supplier Engagement

1. Map and Segment Your Supply Base

Not all suppliers need the same level of engagement. Segmenting your supply base by risk, spend or strategic importance allows you to tailor your approach. A key IT supplier shouldn’t be treated the same as a one-off stationery vendor. Your eProcurement Software must support your team in achieving this segmentation to avoid unnecessary manual work. Once segmented, define clear engagement plans for each tier.

Within strategic supplier tiers, you might want to establish formal partnership models or even joint governance frameworks. This could include mutual KPIs, regular steering meetings or shared planning sessions. The more important the supplier is to your operation, the deeper your engagement approach should go.

2. Streamline Your Supplier Touchpoints

Audit all the different ways your organisation communicates with suppliers. Consolidate these into a central supplier portal or platform. Atamis’ solutions for example, allow clients to automate onboarding, track progress, share updates and keep all communication in one place. This alone drastically reduces friction.

Centralising communications reduces confusion and improves accountability. Suppliers know where to go for updates, plus your internal teams have a clear audit trail of all interactions. Over time, this can significantly reduce delays, missed deadlines and duplicated work.

3. Introduce Feedback Loops

Make it easy for suppliers to give you feedback and show them you take it seriously. This could be a quarterly pulse survey or even just a post-onboarding form. For example, if your suppliers tell you your risk questionnaire is too long and confusing, revamping this touchpoint may improve engagement and turnaround time. Demonstrating to suppliers that their feedback has influenced internal discussions around efficiencies and SRM can go a long way.

Feedback loops shouldn’t just be formal. Encourage your contract managers and stakeholders to document informal conversations and observations. Sometimes the richest insights come from the day-to-day interactions that don’t make it into reports. Building a culture of listening helps your suppliers feel genuinely valued.

4. Build in Early Engagement

Engage suppliers earlier in the procurement cycle, particularly for complex or strategic projects. This could mean a request for information (RFI) stage, supplier briefing sessions or even collaborative workshops. This early engagement creates buy-in and often results in better solutions.

Early engagement often results in fewer change requests and a smoother delivery. Plus, it signals that you value their expertise, which builds trust and loyalty.

5. Make Engagement Part of the Culture

Supplier engagement shouldn’t sit with procurement alone. Educate stakeholders across the business on why it matters and what good looks like. Encourage contract owners to maintain regular check-ins and to flag supplier concerns early.

This could include training on supplier relationship management, embedding engagement metrics into performance reviews or even assigning supplier champions within key departments. The more your internal teams understand and buy into the engagement approach, the more consistent and effective your supplier relationships will become.

6. Leverage Technology

Modern supplier management tools (eSourcing tools or Source-to-Contract Solutions) can automate admin and free up your team to focus on strategic engagement. Atamis lets clients tailor onboarding journeys, send automatic updates and maintain a single source of truth for each supplier. That consistency goes a long way.

Technology also makes it easier to gather data on supplier interactions, which can be used to spot bottlenecks, track engagement over time and identify areas for improvement. Dashboards and analytics help bring supplier sentiment and performance into clearer view, allowing for more proactive management.