Mallinckrodt earned the National Shippers Strategic Transportation Council’s (NASSTRAC) prestigious annual Shipper of the Year award for revamping their supplier relationship management (SRM) processes.
In early 2016, Mallinckrodt initiated an examination of interactions and relationships with its suppliers and vendors, many of which had been in place since before the company became independent in 2013. The award is an acknowledgement of the tremendous work it took to overhaul these processes and speaks to the important impact it has on the business.
“Cost reduction wasn’t necessarily our priority; our emphasis was on mitigating risks and improving efficiencies in our supplier relationships,” said Matt Harbaugh, Mallinckrodt’s Executive Vice President and Chief Financial Officer. “Bigger picture thinking was needed, so we stepped back to evaluate what kind of trade-offs came with low-cost vendors, and how we could gain additional benefits through more strategic supplier and vendor partnerships. I’m proud of the progress the team has made and applaud them for this important recognition of their efforts.”
Mallinckrodt’s emphasis on strengthening vendor partnerships required a thorough assessment not just of vendors, but of the company’s own actions. Supplier feedback programs provided Mallinckrodt with a better understanding of vendors’ perceptions. Mallinckrodt also put more time and resources toward meeting with suppliers, vendors and transportation carriers on a regular basis, especially with those engaged in the SRM program.
Logistics Management magazine featured Mallinckrodt’s SRM transformation and the NASSTRAC award in its November issue.