LIVING LOGISTICS BLOG

    All there is to know about Supplier Relationship Management

    Nov 15, 2019 7:11:00 PM / by Justin Wolf

    Sometimes, having a good relationship with your suppliers can be a difficult proposition. Strategically planned interactions with third party organizations have to be precisely executed in order to maximize the value of the desired synergies.

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    This can be a dilemma faced by many organizations.  The more suppliers that are required for daily operations, the harder it will be to maintain the balance between them. There is a lot to consider in order to master those relationships and, as a 4PL Logistics Provider, we surely understand the potential obstacles.

    Determining which KPI's are applicable to evaluating a supplier's performance are some of the first challenges that any company will encounter. Establishing a Supplier Relationship Management (SRM) process will aid these companies in evaluating supplier's performance, allowing them to make corrections and improve the management of their supply chain.

    SRM is about strategically planning and conducting conversations that promote collaborative business relationships designed to create value, drive continuous improvement, and reduce the risk of failure for participating stakeholders. Those organizations which practice SRM commonly nominate a Steering Committee to drive the overall strategy and assign an SRM Coordinator to facilitate the process. Typical planning aspects include Supplier Segmentation, SRM Governance, Performance Management, and Supplier Development.

    A strong Supplier Relationship Management process is critical to companies managing many suppliers across complex supply chains. The SRM approach aligns key values including continuous innovation and trust building. Executive-level engagement that promotes collaboration among all stakeholders is a necessity.  Lean tools and methodology help identify opportunities where companies can then invest in solutions that promote sustainable improvements. The SRM approach is a mutually beneficial, win-win methodology that helps companies and their suppliers succeed.

    Our Corporate Procurement Professionals created this Quick Tip Guide to assist you in your discussions. In this summarized document, you will find a comprehensive list of information about Supplier Relationship Management benefits including: opportunities, value creation and strategy tips.

     

    Click here to download our Exclusive GEODIS SRM Guide

     

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    Topics: Customer Loyalty, Supply Chain Solutions, Supplier Relationship Management (SRM), Customer Satisfaction, Supply Chain Diagnosis, Customer Experience, Key Performance Indicators (KPIs), Customer Service, Supply Chain Optimization, Cost Savings, RFQ Handling

    Justin Wolf

    Written by Justin Wolf

    Justin is a Procurement Manager at GEODIS. Justin has an Industrial engineering degree from Ohio University and an MBA from Xavier University in Cincinnati. He has almost 20 years of experience in the supply chain industry. Justin enjoys sharing his expertise about supplier management and supply chain.