Professional Documents
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Contents
What is Supplier Relationship Management (SRM)? Objectives of SRM Tools and Media Applying Tool Set
Role of PR
SUPPLIER RELATIONS
Supplier relationship management (SRM) is a discipline of working collaboratively with those suppliers that are vital to the success of the organisation, to maximise the potential value of those relationships.
Finding good suppliers and maintaining solid relations with them can be an invaluable tool in the quest for business success and expansion.
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Why SRM?
To level the playing field To extract additional value To stay on top of our game
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Strategic Demand
Operating Supplier
relationship management
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Strategic Sourcing
Consolidate purchasing Client requirements gathering Industry/supplier analysis Create competition Disciplined selection process Effective negotiations Contract management
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Demand Management
Non-compliance reported
Contracting authority
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Operating Efficiency
Supplier database
Standardized RFP formats Online auctions
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Regardless of the outcome, top procurement operations continually investigate best practices.
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Objective
Minimize the risk of supply chain disruptions. Select the best suppliers to gain advantage over competitors. Streamline the supply-chain management process by collaborating with business units across the enterprise. Assure that your organization's resources are utilized in the best manner.
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Reductions in total product cost, either through streamlining of work processes or replacement of costly components with less expensivebut still effectiveones. Improvements in customer satisfaction. Reduce direct and indirect costs and improve bottom-line profitability. Improvement of products through contributions to product design, technology, or ideas for producing new products.
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Improvements in product quality. Improvements in "speed to market. Gaining high market value and share.
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Supplier Segmentation
It is a process that involves dividing suppliers into distinct groups with different needs, characteristics or behavior. Segmentation traditionally uses 4 categories: Commodity: Where little or no SRM activity is undertaken as the suppliers provide infrequent one off goods or services
Performance Management: Where focus is placed upon cost and service levels as the supplier is providing off the shelf goods or short to mid term services that are not strategically important and are provided from a competitive market environment
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Development: Where focus is placed upon continuous improvement to service levels and cost as the arrangements are more mid to long term, with some strategic value Partner: Where strategic long term goods and / or service suppliers are managed to secure supply and drive collaborative engagement with shared benefits
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Accountability
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Technology
Leading SRM organisations are using SRM technology as the change agent to get stakeholders and wider business buy in. Resourcing The three key skills required for procurement to implement successful SRM are: Market & category knowledge cross-functional working commercial & contractual expertise.
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Supply Chain
It is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers
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Demand Management
Supplier RelationshipM anagement Buy,Pay,Tr acks
Process were Viewed as linear and separate. A Separate dedicated SRM team was envisioned
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New relationship
Existing relationships
Healthy Troubled
Non Traditional
Potential for significant reward Fostered by most senior leaders not procurement led
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Adversarial does not mean negative! Goals are not aligned Supplier goal is to take buyers money. Their responsibility is to their shareholders Our goal is to keep our money and obtain needed goods or services
Original position - relationships built on trust Revised position relationships built on respect
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Role of PR
Write press-worthy releases, prepare information for media kits and work with internal representatives to disseminate information to supplier about the plans and policies of the organization.
Identify main influencer groups and develop and implement a communication plan.
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Supervise and grow the role of the PR coordinator with a special emphasis on growing the online channel to drive page views and well supply chain management. Take initiative step to solve the crisis and maintain tempo among organization and supplier.
Take up the quires of the supplier to management and vice versa and play the role of interface.
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Conclusion
Organization has well defined set of objectives for the Supplier Relation Management.
Organization use various tools to maintain Supplier Relation. The role of PR department is very important to maintain smooth and healthy growth.
QUESTIONS?