SRM: Challenges and Benefits
A Supplier Relationship Management (SRM) is an approach and a process for engaging with and managing suppliers. The purpose of SRM is to optimize and streamline all interactions with the organizations that supply goods and/or services to your company.
This is an important approach as businesses are under constant pressure both on prices and on their ability to innovate. Controlling and sharing information with key stakeholders are challenging. Therefore, a successful SRM strategy aligns a company and its suppliers to ensure that information, products and services flow smoothly through the supply chain. It will result in an effective communication between an enterprise and its suppliers.
This SRM process is also essential to leverage the supplier capabilities. Having a Supplier Relationship Management approach will lay out clear expectations for suppliers. This will then encourage them to be more proactive and accountable for their actions.
However, SRM is not just a procurement function. Collaboration and alignment with other business functions are crucial. With external and internal collaboration, you will have access to accurate and timely information, your overall cost will be reduced and it will increase the value creation.
Lascom as a SRM
With its software, Lascom allows companies to quickly implement this approach. The solution offers smooth and effective processes and workflows to better manage supplier collaboration. Collaboration means developing, sharing and updating new and existing product information through a coherent and structured process. Every participant involved is able to find the right information at the right time.
A supplier portal provides central access and control of all relevant information, such as supplier’s specifications, proposal, etc.
These processes also enforce each stakeholder’s accountability. For instance, suppliers and partners are responsible to populate data such as raw material specifications, packaging information, etc. and to maintain their accuracy. They are also responsible in updating key information such as certificates renewal.
By implementing strategies that focus on opening up innovation processes, setting up structured business processes and increasing collaboration with suppliers, the company can consolidate information and easily manage its product portfolio.
It is important to note that Lascom software enhances collaboration while protecting proprietary information.