The implementation of an extended supplier relationship management (SRM) programme can deliver huge advantages to procurement organisations in every location – but what are the fundamental elements that firms need to embrace in order to maximise opportunities, drive innovation and deliver benefits to both the company itself and to the supplier?
Here are a few quotes from a recent White Paper which aims to answer those questions through a series of in-depth interviews with some of procurement’s most influential figures.
How you define the relationship between your top suppliers and the rest of your supply base is what matters – John Dickson Former CPO of Diageo
You need your suppliers to be as competitive in their market place as you are in yours – Ashley Readshaw Former CPO of AstraZeneca
Procurement can’t do this on its own – it needs the support from the wider business – Chris Holmes Global Head of Supplier Performance at Novartis
Make sure your SRM strategy benefits your entire supply chain – Andre Le-Lerre VP Ericsson
Make sure IP isn’t a barrier to innovation – Donald Klock Rutgers School
Through their shared experiences at companies across a diverse range of industries and a range of geographies, the paper explores the challenges that exist when it comes to implementing deeper relationships within the supply base and how the success or otherwise of those relationships can ultimately be measured.
What’s clear is that the introduction of an extended SRM programme is about far more than simply driving down costs. It’s also evident from speaking to these industry leaders that one of the most crucial elements of an extended SRM programme is ensuring that the aims and ambition of the strategy are clearly defined – both to the suppliers and to the wider-business.
Also crucial to success is the disclosure of potentially sensitive information and it’s here where procurement faces one of its major challenges. Without that disclosure and openness, any extended SRM programme is doomed to failure from the start.
As the case studies within the White Paper illustrate, achieving that trust and sharing the information necessary to deliver innovation and success hold the key to delivering results that can make a real and genuine difference to a company’s bottom line and to the financial health of the supply base.