Relationships require work.
After all, no pain, no gain.
And this not only applies in our personal lives, it applies in business as well.
When it comes to companies, there’s a simple formula for success: the better we listen, anticipate, analyze, discuss and take a balanced, reasoned approach, the better our relationships will be with our suppliers.
Maximum transparency is the goal and foundation for cooperation based on trust.
A supplier relationship management (SRM) system facilitates a close connection with all suppliers, a new form of communication, and the exchange of relevant information and data in the context of real time need for the entire process of demand management, sourcing and its collaboration.
This includes involving users and other functions/departments - because the more multi-dimensional the supplier relationship is, the more value it adds.
The future will impact the product lifecycle, starting with product development and, in particular, the associated dovetailing of in-house innovation with supplier innovation.
Ultimately this will drive differentiation and competitive advantage.
The purchasing team is supported electronically through the entire processes from requirement and demand management to sourcing and contracting; it keeps track of process outcomes and progress.
As a result, newly acquired, valuable information gives way to sound, compliant decisions, which in turn leads to significant improvements in business success and, above all, increased value add.
This can drive cost reductions, supplier innovations and revenue growth through purchasing.
Ultimately, we must extract and utilize the value of collaboration more effectively - employing modern SRM systems and methodologies to focus relationships and interaction more acutely on creating quantifiable value add.
Supplier value management (SVM) is enrichment and progression of supplier relationship management, enriched with lessons learned from previous years and geared towards increasing value add through supplier relationships.