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Strategic Supplier Relationship Management

For an enterprise, the ability of a supplier determines the speed and height of its development. At the same time, the quality of the supplier group of an enterprise clearly reflects the strength and status of the enterprise in the market.

In recent years, the global economy and market environment have entered the VUCCA business era, and China has also entered a period of adjustment from a high-speed development model. At this time, many companies found that the operating models established in the past in the era of rapid growth, as well as the ideology and professional skills of the management team, have encountered challenges in today's VUCA business era. Under the current new normal that is more about quality and personalized customization than speed, the development of enterprises is increasingly inseparable from their own ecosystem. The supplier group is a very important group in the corporate ecosystem.

The term "supplier relationship management" is already a very popular word in multinational companies, but it is still a strange word in local companies. In practice, because of the lack of a true mutual trust mechanism, lack of detailed and consensus data statistics and Analysis, lack of long-term development direction and goals, supplier relationship management is often misunderstood as a more civilized expression of "cost-saving". Without a proper understanding of supplier relationship management, it is impossible to truly realize its value.

Whether it is the world's top management consulting agency or the world's top 100 multinational groups, their interpretation of supplier relationship management often exceeds the understanding of ordinary people:

Supplier relationship management is not only based on the supplier's performance and business scale. It is more important to introduce the strategic potential of the supplier, to scientifically layer the suppliers of an enterprise, and to carry out different strategic positioning.

Many enterprises are confused about "how to determine strategic suppliers?", How to manage suppliers, and other issues, which are easily solved under the supplier's strategic layering and positioning management system.

The core purpose of supplier relationship management is to create value. Excellent core suppliers are strategic resources for enterprise development, and management resources also need to be allocated optimally. Through scientific layering and strategic positioning of different types of suppliers, it has created unprecedented value for enterprises.

Supplier relationship management is a systematic management behavior that guides suppliers. Suppliers are not machines. By upgrading hardware or software, the machine will definitely achieve higher output and more stable quality. However, the supplier's representatives are people, and through interaction with others, we can establish the strategic cooperation relationship we expect, which will affect the supplier's behavior.

Although international supplier relationship management leading companies place high requirements and pressure on suppliers, capable suppliers also have the opportunity to develop together with these outstanding leadership companies and grow into industry leaders.

Therefore, a scientific supplier relationship management system is a strategic win-win relationship management system. Correctly understanding and implementing strategic supplier relationship management is a necessary condition for enterprises to improve their competitiveness!

Benefits of SRM

SRM focuses on how to cooperate more effectively with suppliers to create value and deliver value. SRM fully considers the interests and goals of both parties. Scientific SRM needs to consider the following issues:

At the company level, what do we want from this supplier?

What kind of feedback do we want to prompt this supplier?

How do we define our relationship with this supplier?

What can we bring to suppliers?

How can we ensure that we have internal communication when working with this supplier?

What tools and models are suitable for working with this supplier?

SRM is a cross-functional high-level responsibility, and the responsibility of procurement is to coordinate SRM and successfully introduce its concepts to the enterprise.

To truly release the energy of SRM, you must first change the behaviors of both customers and suppliers. For example: sum up the views or feedback of different functional departments in the organization on the supplier, form a unified opinion, and then pass the information to the supplier It will be more effective and systematically manage the interaction with suppliers, which can release immeasurable value potential far beyond simple cost savings.

Scientific SRM can release a large number of opportunities and create value for enterprises to enhance their unique competitiveness. The ultimate harvest of SRM is to cooperate with certain strategic suppliers and establish an advantageous ecosystem.

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