Ask procurement leaders whether supplier management is a priority, and the answer is almost always yes. Ask them whether their organisation is doing it well, and the responses get considerably more complicated.
The gap between supplier management’s stated importance and its actual execution is one of the function’s most persistent problems and in many organisations, it’s widening. The scope of what supplier management covers has expanded dramatically in recent years: onboarding, third-party risk, regulatory compliance, sourcing input, performance governance. But the infrastructure to support that scope hasn’t kept pace.
That’s the tension at the heart of a new whitepaper co-developed by Brooklyn Solutions and Art of Procurement, Beyond the Contract: Why Supplier Management Needs a Holistic Rethink.
Why Supplier Management’s Scope Has Outgrown Its Infrastructure
Supplier management used to be a relatively bounded set of responsibilities: manage relationships, track performance, handle renewals. Today, the same teams are expected to assess third-party risk before a contract is signed, maintain compliance across multiple regulatory frameworks, and advise on category strategy, all while keeping existing supplier relationships running.
The problem isn’t that the scope has grown. It’s that it’s grown without a corresponding increase in resources, tools, or organisational design. As Jesse Lee, co-founder and CEO of Brooklyn Solutions, puts it:
“Your business depends on your suppliers, and every outsourceable service is getting more and more commoditised, so that total reliance on your suppliers is only going to keep growing. Organisations that are ahead of this realise they absolutely must stop treating supplier management as a back-office function and start treating it as a strategic asset to the business.”
The Silo Problem: Fragmented Supplier Management in Practice
The root cause of most supplier management failures isn’t poor people or bad processes — it’s fragmentation. Risk management sits in one system, contract management in another, supplier relationship management somewhere else entirely. Each function has its own data, its own view of the supplier, and no single picture of the full relationship.
The symptoms of sub-par supplier management are predictable — and probably familiar:
- Disconnected supplier data across systems with no single view across risk, contracts, and performance
- Policy stuck in documents instead of being embedded in digital workflows
- Manual effort required for every regulatory or audit response
- Supplier onboarding treated separately from in-life management
- Risk and contract teams working from different pictures of the same supplier
- Procurement stuck in reactive mode, engaging suppliers mainly when something goes wrong
- Point-solution sprawl without improving overall connectivity
Each of these individually is a productivity drain. Together, they represent a structural risk that’s easy to underestimate and hard to fix piecemeal.
Why Point Solutions Make Supplier Management Challenges Worse
The instinct when facing these problems is to reach for another tool. But adding a new point solution to an already fragmented landscape is more likely to create another silo than to dissolve existing ones.
What’s needed instead is an orchestration layer; one that connects risk, contracts, and supplier performance data, makes policy visible across the organisation, and embeds governance into how people actually work, not into a PDF they’re supposed to read and memorise.
“Procurement policy that is stored in a PDF or SharePoint, where everyone’s supposed to read, memorise and apply it, is just a source of governance failures waiting to happen. Good looks like digitally fanning that out so it lands on the suppliers, the contracts, and the services.” – Jesse Lee, CEO of Brooklyn Solutions
Building a Supplier Management Strategy That Actually Holds
For procurement leaders thinking about how to improve supplier management, a roadmap is essential. Without one, technology investments tend to solve the problem directly in front of the team while leaving the next challenge unaddressed.
Solving contract management without connecting it to risk management, or improving supplier onboarding without linking it to ongoing performance management, produces incremental progress at best. The organisations that make meaningful advances are the ones that take a holistic view from the start, even if they implement in stages.
The full whitepaper, co-developed with Art of Procurement, provides a practical framework for building that roadmap. It covers how to assess your current state, where to focus first, and how to structure a supplier management programme that actually delivers on the strategic purpose procurement leaders know it should have.
Listen to the full conversation:
Jesse Lee discusses these themes in depth with Jyothi Hartley of Art of Procurement on the ProcureTech Insider podcast. It’s a complementary read that walks through the same ideas from a practitioner’s perspective.
Beyond the Contract: Why Supplier Management Needs a Holistic Rethink
by Brooklyn Solutions and Art of Procurement.