Rarely a week goes by without a discussion over the definition of SRM (Supplier Relationship Management) and why buying organisations embark on programmes aimed at solving….what exactly?
Consensus is largely absent and SRM is variously described as partnering, collaboration, value improvement, supplier development, risk management, performance management, and other ‘pieces of the SRM jigsaw’. Perhaps there will never be complete agreement and all that matters is that the organisation (somehow) achieves an acceptable return on its SRM investment. Pragmatism rules, and so it should.
Just getting started on an SRM programme is a challenge in itself and, in this short video, David Atkinson and Ed Bradford explore some of the operational challenges that a serious SRM programme should at least aim to address. These challenges are herein described as ‘problems’, but they are also opportunities and procurement leaders should be designing their programmes so that these opportunities to do things better are diligently harvested. This can help build the business case for SRM and, along with a simple and clear definition of SRM, should point the way to greater internal alignment, superior supplier engagement, and more value from those key supplier relationships.
Take a look at the video clip and share your own thoughts. SRM continues to grow in relevance to procurement leaders and their organisations and there are many who have a contribution to make to the debate. Don’t be shy.