Secure Your Supply Chain and Innovate With Your Key Suppliers
Set up customer-supplier partnerships within months
Procurement’s priorities have moved beyond cost. Supply continuity is now procurement’s top objective, ahead of cost reduction for the first time in years. Most companies can see risks at their direct suppliers, but only 42% can see further down the supply chain. Supply chain emissions average 26 times a company’s operational emissions, and only your suppliers can cut them.
Faster, and far less capital, than the market
Leading customer-supplier partnerships have taken 32 to 42 months to start working and committed up to 2.5% of revenue up front, some every year. Your Corporate Venture delivers value from month 5, and your company pays no up-front fees: each supplier pays about 0.06% of its own revenue or less, depending on its revenue band.
What your Corporate Venture gives you
- Supply continuity and resilience, through enhanced visibility into each partner supplier and its own supply chain.
- Joint teams with your suppliers redesigning products for cost, quality and lower carbon.
- Joint innovation and new products, with the revenue from each joint product split 50/50 between you and your supplier.
- Preferred terms and Scope 3 cuts, with your suppliers paying the up-front Scoping and setup fees.
How it works
- You invite. You choose the major suppliers to approach and introduce them under a mutual non-disclosure agreement.
- Supplier Scoping, weeks 1 to 4. Each supplier commissions its own Scoping Proposal, paying 40% of its fee at the start, and baselines are set.
- Commitment. Each supplier pays its setup fee and INNOVO begins building its own Corporate Venture, linked to yours.
- Joint teams, from month 5. Work on resilience, product redesign and new products begins, with projects financed externally and value independently assured each quarter.
What your suppliers gain
A secure, long-term customer relationship, an equal share of the independently assured partnership value, half the revenue of each joint new product, and joint projects financed without their own capital.
What you pay
You pay no up-front fees. Each supplier pays a Scoping fee and a setup fee at the published rate for its own revenue band: $10 - $25B, $25 - $100B or $100B+. Their Scoping fees and initial set-up fees are about 5% of the Venture’s costs for the first 3 years and about 1.3% of the value it expects to add in Year 3. Apart from technology search retainers and your half of the independent assurance fee, which you share with each supplier, every later fee is paid from measured value created. Figures are modeled outcomes for a $10 - $25B Corporate Partner, not results achieved.
Choose the major suppliers to invite, and book a 30-minute meeting with INNOVO