Supplier relationship management is a comprehensive approach to managing an enterprise’s interactions with the organizations that supply the goods and services it uses. The goal of supplier relationship management (SRM) is to streamline and make more effective the processes between enterprises The SRM process aligns, provides structures, and manages the supplier relationships.
Enablers of Supplier Relationship Management
- Effective contract administration processes
- Agreements purposely structured for SRM
- Aligned values between company & Supplier
- Skilled, trained and capable personnel
- Leadership that supports & believes in SRM value proposition
Key Components of a Successful Supplier Management Programme
•Leadership
Clear Objectives
•Key Stakeholder Support
•Tenacity and Commitment
•Willingness to Engage in a 2 Way Dialogue
•Communication
Benefits of Supplier Relationship Management
- Minimize supplier-related risks
- Maximize opportunities to reduce/avoid costs
- Capitalize on potential synergies revealed through greater integration between supplier and client
- Maximize client satisfaction
- Maximize client investment in supplier relationship
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