Supplier relationship management (SRM) is a business initiative that many companies undertake to build mutually beneficial relationships with suppliers. Well-designed SRM programs help companies to increase collaboration by identifying the right suppliers with whom to partner.
Supplier Relationship Management Benefits
- Reduced costs
- Better-managed risks
- Enhanced supplier responsiveness
- Improved visibility
- Use of suppliers’ full capabilities
Supplier Relationship Management (SRM) Process
- Segment your Suppliers
- Create a Supplier Strategy (Not every segment should be managed the same way, and not every supplier within a segment should be managed the same way.)
- Execute (and Monitor) the Strategy
- Improve Supplier Quality
Supplier Segmentation Methods
- Product or service type
- Ideal relationship type
- Supplier capabilities
- Customization versus standardization
- Level of innovation
- Lead times
Practical Tools To Use
- Kraljic Matrix
- 10 cs of supplier evaluation
- Demand Profiling Matrix
Read also:
- Key Factors to Consider When Chosing A Pharma Supplier
- Supply Chain Track and Trace Solution in Pharmaceutical Packaging
Resource Person: Asmaa Metwally
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