Supplier Relationship Management (SRM)
How to Manage Your Suppliers Effectively
Could your organization thrive – or even survive – without its suppliers?
Maybe you depend on other companies for critical manufacturing components, or you rely on an external IT provider to keep your website up and running. Perhaps you outsource your cleaning and catering services to keep your offices shipshape and your workforce well fed.
Establishing and maintaining good relationships with suppliers can save you money, add value to your business, and help you to achieve your strategic goals. But how do you assess which suppliers matter the most? And what level of connection should you have with them?
In this article, we look at how to categorize your suppliers and focus your efforts where it's needed the most, so that you can get the best results from each relationship.
How to Manage Supplier Relationships
There are four steps that you can take to better manage your supplier relationships:
- Understand each supplier's importance to your organization.
- Understand your role in managing each supplier.
- Understand your supplier agreements.
- Manage your suppliers effectively.
Now, let's examine each step in more detail.