Supplier Relationship Management: Victim or Savior?
Tim's piece raises a number of dilemmas for organisations. One that I personally have experienced is in the past 10 years SRM is more often part of the Procurement Practice whereas earlier in my career it was embedded in operations and working with contract managers. The alignment of SRM to drive value and collaborate with strategic suppliers to meet the goals, vision and objectives of the organisation (customer of choice)I feel benefits from being within operations alongside the senior team (as critical friends and advisors). However I see great benefit of working hand-in-hand with category management and procurement especially when reviewing sourcing strategies and at times of extension or re-procurement. Within procurement practices SRM is often assigned targets of savings to achieve, this often detracts from the value that can be driven from SRM which often brings efficiency, economies of scale and collaboration between partners thereby leading to cost avoidance / reduction.