Simon Hardy, Director of Customer Solutions, Featured
According to a recent American Productivity & Quality Center (AQPC) report, supply chain managers identify supplier relationship management (SRM) as a top 2017 priority. If properly executed, SRM can result in materials and services arriving at the right place at the right time and can provide an ideal balance of inventory, working capital, and service levels.
Effective SRM starts with understanding your internal capabilities, your supply base, and the available collaborative technologies. A key goal is to drive holistic alignment with suppliers across the corporation.By automating with the right suppliers, your business can reduce administrative burden and errors, gain visibility into what is happening, and drive down costs.
However, automation alone is not the answer. Process efficiency needs to first be measured before it can be improved.
To understand the supply base, begin by evaluating your suppliers’ financial stability. Gain visibility into inventory, recognize their flexibility and scalability, attain lead times, monitor key performance indicators, identify their payment terms and evaluate their commitment to customer service. A high level of trust is required to maintain strong relationships. Engaging with suppliers as collaborators evokes a win-win relationship that fosters cost savings and efficiency.