Supplier Relationship Management (SRM)
In the multifaceted business climate of today, information gained from supply chain partners is often the key to competitive success. Consequently, managing supplier relationships is one of the most important functions performed by the procurement department. It requires strategy, skill, and patience; it is a complex process that demands comprehensive attention in order to prove successful. And, most importantly, it has to be learned and practiced.
This chapter reviews several key aspects to managing supplier relationships. To begin with, we examine the steps you can take to develop the groundwork for more productive strategic supply relationships. Then, we review the more common day-to-day tactical activities of a procurement department in its interface with the supplier community and how you can make these activities more meaningful. Finally, we look at how you can effectively represent your organization through interaction with external supply groups.
Managing Productive Supplier Relationships
Productive supplier relationships do not just happen: As with any relationship of value, they demand effort and perseverance. In your role as procurement professional, there are a number of disciplines you will have to master in order to better encourage strong supply relations. In this section, we review the more commonly used processes that enable and improve relations with your suppliers.
Creating Good Working Relations
You create good ...