Supplier Relationship Management (SRM)
Increasing value and lowering costs
Managing Key Suppliers delivers significant commercial and business impact – increasing value and lowering costs.
SRM is the systematic management of an organisations‘ relationship and interactions with its key suppliers. However, it is not just a process.
It must have TEETH!
The objective is to achieve competitive advantage, by reducing cost, increasing value, leveraging supplier innovation and reducing risk throughout the life cycle of the relationship.
The Supplier Relationship Management Approach
- A relationship focus on key, strategic suppliers
- Cost reduction from suppliers with high spend
- Increased value – particularly from strategic relationships
- Empowers suppliers to bring innovation
- Results in improvements to service levels, quality, availability and value for money
- Reduces risk in the supply-chain
- Reduces supplier disputes and risk of disruption
- Facilitates Supplier Collaborative Cost Reduction
- Provides governance, compliance and reporting
- Measurement of key suppliers through KPIs
- Enables global, regional, local management through a complex organisation
However, the approach of many organisations to SRM is poor, for example:
- a “fire and forget” approach to sourcing; just leaving the organisation to manage suppliers once sourced
- or a half-baked and inconsistent supplier relationship management – often with the wrong suppliers, managed infrequently, without any robust approach.
The net result is a waste of time for both the organisation and the supplier.
Procura support the implementation of effective SRM through:
- SRM diagnostic and transformation planning
- Segmentation and targeting
- Suppler Management Toolkit
- Training and coaching
- Co-Sourcing – delivering together to drive benefits and embed process and methodology
We have a tried and tested methodology enabling us to rapidly and efficiently deliver clear and actionable analysis to clients. We deliver more than 20 spend analysis projects a year for clients.
Our clients range from small companies to global corporations, as well as Private Equity portfolio investors.
We are specialists in procurement cost reduction. Our consultants work closely with all kinds of organisations to improve their profitability through identifying, delivering and maintaining savings in procurement expenditure. A relentless focus on bottom-line results combined with our deep supply-market knowledge ensures that spend is optimised – and stays optimised.
- Our team has achieved over £20m in savings
- Projects are self-funding with no risk for clients
- We work closely with your people to embed best practice
- Our unique spend intelligence service ensures ongoing savings