IACCM Contract Management Forum

« view all forum posts

Southern Water
2018-01-11 17:48:46

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.
 •  Yorkshire Water Services Limited,  •   2018-01-12 15:11:41
Couldn't agree more with this Paul. Might be good to share some experiences.
 •  RSM  •   2018-01-27 15:22:57
I strongly believe that there are various levels of SRM within the organisations. The senior directors from the suppliers side needs to have a relationship with the same level within the organization so that they can have strategic level discussions and also relationship at that level helps when things are not going well. At the level below this, you need to have relationship with operational managers. To get the best value from your contracts (and its not always savings), the operations team needs to be involved as well as colleagues from procurement and finance. In my experience, only colleagues from operations or the ones who are receiving the service/goods can really corroborate what the supplier is saying in terms of performance but procurement/finance colleagues brings different perspective and challenge. Combining the intelligence within the organization is the best way to get most out of your SRM.
Replies: 2
Filter by category
Operations & Capabilities
Organization & People
Strategy & Management Tools