E J T Management Consultants Limited

     Purchasing and Supply Management Solutions

Supplier Relationship Management

One of the challenges for many companies is to move beyond short-term cost savings and to work together with suppliers to create value for the longer term.

Many companies are becoming more increasingly aware that proactive Supplier Relationship Management (SRM) is capable of vigorously supporting both top line revenue growth and bottom line cost reductions. 

But what is SRM? Ask any 20 procurement professionals for a definition of SRM and you will probably get 20 different answers.

The number of different answers reflects the emerging nature of SRM, the prioritisation of value, and the various and different strategic goals. These value priorities and strategic goals can range from co-development of innovative products and services, to increasing speed to market or gaining access to scarce resources, to performance excellence to contract through to sustainable long term cost reduction.

However each expectation has a common theme - that significant additional value can be unlocked from major proactive supplier relationships.

SRM is only relevant to a hand full of a company’s top core suppliers and SRM should only be implemented when the company is confident that it is working with the most capable and economical suppliers.

SRM is less a process than it is a way of operating. At its most basic operational level, it’s about implementing mechanisms to help ensure that suppliers honour their commitments as regards price, quality and delivery. At a more strategic level, it’s about jointly working with suppliers to reduce costs and maximise value, in instances where a competitive sourcing process is either not feasible, or where its potential has been exhausted.

Managing supplier relationships on a more strategic level reaps many rewards. Those who get it right achieve higher revenues and increased competitive advantage.

We work together with senior business and procurement executives to release this full value potential from major suppliers. Our work ranges from restructuring single relationships through to full scale transformational change.

We are committed to helping our clients build their SRM capability.

For more information about EJT Management Consultants Limited purchasing and supply management services please e-mail:info@ejtmcl.com