Procurement and Supplier Relationship Management (SRM)

What Is The Supplier Relationship Management (SRM)?

In today’s global economy, suppliers have a central role in product development processes and businesses well-being. With the ever increasing number of suppliers and subcontractors it is becoming critical to optimise their management. Specific tools have now been developed in order to automate and simplify processes, making it easy to make fast and informed decisions regarding suppliers.

SRM, helps businesses to improve collaboration with their suppliers, implement new processes, share use cases, and methodology. It gives them a better understanding and knowledge of each supplier to optimise engagement. It offers the ability to adapt suppliers management depending on their activity, costs, value and exchanges.

To be implemented, businesses have to follow 3 global steps :

– Suppliers’ segmentation : who is doing what ?
– Suppliers’ strategy planification: define objectives, processes, resources, methodologies
– Suppliers’ strategy execution : plan execution and follow-up