Supplier Relationship Management
A major trend in business is the ever-continuing growth of outsourcing. In the desire to focus senior management on the core functions of the business that drive revenue, previously in-house services such as I.T, Human Resources, Facilities Management, Travel, Fleet and sometimes tactical Procurement, are now routinely provided by outside suppliers. Functional leaders who have been used to managing staff are now managing external relationships and having to deal with some of the following challenges:
- How to create an SRM programme that senior stakeholders understand, and can get behind in their support.
- How to determine which suppliers are worthy of significant management attention
- How to ensure the supplier performs to the contract
- How to design and implement effective performance management systems that motivate the supplier
- How to secure supplier commitment to continuous value improvement
- How to manage risk
- How to create leverage and ‘soft-power’ whilst encouraging collaboration and creativity
- How much capture supplier innovations that help make your organisation more competitive
In addition to helping you develop a coherent and compelling SRM strategy, the Four Pillars SRM Healthcheck and Training programme is aimed at improving the performance of staff who are involved with suppliers, be they procurement/category management specialists challenged to drive more value post-contractually from key suppliers, or those line managers who now have to become expert in managing external relationships.
We use expert tools and templates to gain deep insight into relationships dynamics and highlight some effective ways to achieve immediate and longer-term value improvements. Supplier segmentation, the design of service level agreements (SLAs) and performance scorecards, relationship analysis, value improvement opportunity identification and strategy and priority planning, supplier performance management, development and strategic partnering all feature in our training and support programme.
If you are in any doubt that your team has the right level of skill and experience to effectively manage suppliers, Four Pillars will help turn your managers in to value leaders, capable of getting the best out of your key supplier relationships.
Managing the performance and value the organisation receives from its key suppliers is, in the age of outsourcing and strategic alliances, becoming a core business competence. Make sure your organisation is more than good enough to compete with the best. Your business success might just depend on it.