Optimising supplier management and why co‐dependency equals mutual success

Purpose – To provide a reference paper for managers responsible for procuring services, advocating the use of strong relationship models, based on co‐dependency and collaboration between the supplier and purchaser of services. Design/methodology/approach – Based on a combination of research into this topic coupled with the authors empirical knowledge through consulting case studies. The theory, as derived from the research supports, reinforces the authors' findings from dealing with client projects. Findings – Acknowledges that the burden of transaction cost economics encourages aggregation of the services supply chain which in turn, when managed carefully facilitates an improved working/partnering opportunity with a few select suppliers. The suppliers benefit in turn by increasing volumes, allowing them to protect margins and the purchasers benefit through overall lower total cost of service, more attentive suppliers and potentially a much enhanced working relationship. Practical implications – Practical guide for both practitioners (facilities/property/technology managers) as well students involved in procurement/logistics, supply chain studies. Originality/value – This paper fulfils an identified area of research and offers practical guidance on how to implement a programme that achieves enhanced service supplier relationships.