Supplier Relationship Management
As the key interface between the business and the inbound supply chain, procurement is uniquely positioned to ensure the organisation maximises competitive advantage, by accessing innovation from the supply base and responding to emerging issues such as the rise of “Chindia”, sustainability and third part risk management.
To meet this challenge, leading companies are increasing their focus on supplier relationship management (SRM) in order to drive incremental value above and beyond those savings identified in strategic sourcing projects.
The Faculty has continued to champion the importance of SRM in a mature Procurement function. In 2011 The Faculty developed in conjunction with Roundtable members, the Supplier Confidence Index (SCI). This survey tool revealed valuable insights into how suppliers viewed their customers and whether they were customers of choice. This survey measured a range of indexes related to:
- Organisational Alignment
- Relationships & Communications
- Value Creation Opportunities
- Commercial Strength of Relationship
- Product and/or service Complexity
- Business Process Effectiveness
- Integration Joint Initiatives
From this we will establish a base position for any further SRM programs, which might include:
- Supplier Relationship Management
- Strategy Supplier Relationship Review/Facilitation
- Stakeholder Relationship Management
- Stakeholder Relationship Review- Health Check