What is Supplier Relationship Management (a.k.a. SRM)?
SRM is the practice of managing third parties with the goal of maximizing their value and driving collaboration. It can go by many names – Vendor Relationship Management, Supplier Value Management, Supplier Performance Management, etc. While seemingly simple, an effective SRM program doesn’t happen overnight. It is a strategic tool that requires an understanding of overall corporate goals, procurement department needs, and supplier roles.
SRM is the practice of managing third parties with the goal of maximizing their value and driving collaboration. It can go by many names – Vendor Relationship Management, Supplier Value Management, Supplier Performance Management, etc. While seemingly simple, an effective SRM program doesn’t happen overnight. It is a strategic tool that requires an understanding of overall corporate goals, procurement department needs, and supplier roles.
Is it really necessary?
Yes. Just imagine being exposed to major risk because one of your product lines has come to a screeching halt as a result of one of your suppliers going out of business. Or, what if one of your suppliers comes under fire for a lapse in GMP? On the flip side, what if one of your suppliers is on the verge of manufacturing a new product that could be used to reinvigorate and reengineer one of your products?
Why?
SRM eliminates the what-ifs. Beyond allowing your procurement organization to get in front of worst-case scenarios, SRM allows an organization to realize the full value of their suppliers -opening the lines of communication and standardizing performance monitoring. The right SRM program helps organizations establish and maintain solid relationships with vendors, to understand their challenges and how your organization can mitigate those risks. It not only creates sustainability for companies, but also provides opportunities for growth as well, such as new product introduction and supply chain innovation.
Unimarket Now 2015 – Annual User Conference
Striving to bring together key customer and supplier stakeholders to drive efficiency and savings, Unimarket Now 2015 kicks off October 19th. The three-day conference includes a loaded agenda of presentations, workshops, and networking events centered on aligning buyers and suppliers. This year, Source One joins the event line up, moderating a Knowledge Sharing Roundtable. Panel members will be discussing topics such as sourcing strategies, contract management and effective planning.
For more information on how Source One can help your organization realize the full value of your strategic partners through an SRM Program, visit: Supplier Value Optimization.
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