Supplier Relationship Management
What is Supplier Relationship Management and how will it help your business?
Supplier Relationship Management (SRM) is a key component of the strategic plans, it can’t just be an afterthought. Some suppliers are critical to our businesses so we need to build the best relationships with them. A good relationship with a supplier can make all the difference – they may prioritise you over another customer, make exceptions for you and work harder to meet and exceed your expectations.
In a seller’s market, suppliers can pick and choose their customers – they simply don’t have the capacity to serve everyone. Businesses need to mitigate the risks in this situation to ensure their own supply chain is not affected.
Some important areas of SRM that we cover are:
- Define the ideal buyer-supplier relationship required to optimise outcomes of the sourcing project
- Characterise the relationship between the buyer organisation and a particular supplier
- Determine which of your suppliers are critical to your operation and subsequently the optimal direction of development for the relationship
- Laying the foundations for planned and smooth progression along the scale where appropriate
- Defining what is good practice – power, trust, flexibility
- Identifying key risks – product/service, prices, people
- Managing risk analysis and root causes
- Reducing risks in supplier contracting and outsourcing
- Improving contract negotiation and management skills
- How to review and implement changes to better protect your organisation
If you’d like to find out more about how we can help tailor SRM training to your needs, get in touch here.