{"id":23083,"date":"2024-07-04T15:20:54","date_gmt":"2024-07-04T14:20:54","guid":{"rendered":"https:\/\/www.manutan.co.uk\/blog\/?p=23083"},"modified":"2024-07-25T10:56:32","modified_gmt":"2024-07-25T09:56:32","slug":"how-to-improve-supplier-relationship-management","status":"publish","type":"post","link":"https:\/\/www.manutan.co.uk\/blog\/corporate\/how-to-improve-supplier-relationship-management\/","title":{"rendered":"How to improve supplier relationship management"},"content":{"rendered":"

Supplier relationship management (SRM) plays a key role in the overall performance, and success of companies. Good supplier relationships ensure regular supplies, optimal product, or service quality, as well as efficient collaboration. In other words, this impacts strategic issues relating to differentiation and competitiveness in the market. To build solid, trusting relationships with suppliers, it is important to adopt best practices and avoid some bad habits.<\/p>\n

Establishing a clear framework<\/h2>\n

The first step to improving supplier relationship management is to establish detailed contracts with suppliers and define precise operating rules. The aim here is to avoid any misunderstandings and\/or claims in the future.<\/p>\n

Clearly defining expectations<\/h3>\n

It is important to clearly specify expectations in terms of quality, delivery times, quantities, safety standards, payment terms, etc.<\/p>\n

In addition, the conditions that will assess if commitments are met should also be outlined, as should the conditions relating to the termination of the contract in the event of any problem that would disturb the company\u2019s collaboration with its suppliers.<\/p>\n

Implementing a conflict resolution method<\/h3>\n

A company can provide conflict resolution solutions in the event of a dispute, such as mediation or arbitration via an independent expert. It is crucial to have amicable solutions available to maintain strong relationships with suppliers, even in the event of disagreements. The procurement team can also be trained on these topics.<\/p>\n

Defining a governance framework<\/h3>\n

This involves appointing a person within the procurement department to be responsible for day-to-day management of the relationship with each supplier. It is also necessary to identify all stakeholders involved within the company (internal customers, management, accounting, supply, etc.).<\/p>\n

Ensuring effective communication<\/h2>\n

Once the contractual framework is defined, regular, transparent and effective communication becomes critical for optimal supplier relationship management.<\/p>\n

Implementing clear and regular communication<\/h3>\n

Setting up regular meetings with suppliers to discuss their performance, any problems encountered and improvements to be made is a must. The company also has every interest in adapting the frequency and the type of their meetings to the supplier\u2019s status (strategic, preferred, developing, conditional, etc.). To maximise effectiveness, each meeting must be carefully prepared, with a set agenda and a detailed record of what went on to facilitate monitoring.<\/p>\n

Focusing on information sharing<\/h3>\n

Transparency is vital to establishing a climate of trust. Both parties must share as much relevant information as possible. For the company, this includes ambitions, order volumes, sales forecasts and changes in business strategy, for example. Such visibility enables suppliers to better understand their customers\u2019 needs and thus meet them even more precisely.<\/p>\n

Using digital tools<\/h3>\n

In the era of digital revolution, it is almost imperative to implement Supplier Relationship Management software within the procurement department.<\/p>\n

This supplier relationship management technology makes it possible to:<\/p>\n