Supplier Relationship Management
Management Report
Supplier Relationship Management
Introduction:
The key objective for organizations in today 's cutthroat environment and competitive era is to drive sales and increase margins. To achieve its goals by increasing sales thereby doing an increment in their margins, companies have paid a great deal of attention to the customer side of their businesses thus leading to the evolution of customer relationship management (CRM) that increases companies abilities to understand the customer’s needs and use the customer information wisely to build relationships with their customers.
To increase margins, many companies are applying this same emphasis on relationships to the supplier side. This has led to a new solutions area known as supplier relationship management (SRM).
In each of these cases, “companies have placed not only a focus on automation and other technical improvements, but on emphasizing the relationships.” (Romala. & Menzigian, 2003)
What is SRM?
SRM is a fresh way of extending SRM tools and techniques to the supplier side resulting in mutual profitability for both the manufacturer and the suppliers. It is a new management approach which is all about collaborating with suppliers in an ‘integral’ way, sharing information with them to achieve speed and transparency in operations. This takes SRM to a different level in terms of depth of relationships between the manufacturer and the supplier. Standardization of techniques across suppliers and different manufacturers locations is critical to the success of SRM.
SRM trends include e-procurement, data integration and transparency, and information sharing using a common platform. (solutions.epicor.com)
In SRM, conceptually, the things to be improved and the framework against which the improvements are to be measured are collaboratively defined by the buyer and the supplier. Such an effort is hinged on a firm commitment from both sides. Commitments may include resources such as
Supplier Relationship Management
Introduction:
The key objective for organizations in today 's cutthroat environment and competitive era is to drive sales and increase margins. To achieve its goals by increasing sales thereby doing an increment in their margins, companies have paid a great deal of attention to the customer side of their businesses thus leading to the evolution of customer relationship management (CRM) that increases companies abilities to understand the customer’s needs and use the customer information wisely to build relationships with their customers.
To increase margins, many companies are applying this same emphasis on relationships to the supplier side. This has led to a new solutions area known as supplier relationship management (SRM).
In each of these cases, “companies have placed not only a focus on automation and other technical improvements, but on emphasizing the relationships.” (Romala. & Menzigian, 2003)
What is SRM?
SRM is a fresh way of extending SRM tools and techniques to the supplier side resulting in mutual profitability for both the manufacturer and the suppliers. It is a new management approach which is all about collaborating with suppliers in an ‘integral’ way, sharing information with them to achieve speed and transparency in operations. This takes SRM to a different level in terms of depth of relationships between the manufacturer and the supplier. Standardization of techniques across suppliers and different manufacturers locations is critical to the success of SRM.
SRM trends include e-procurement, data integration and transparency, and information sharing using a common platform. (solutions.epicor.com)
In SRM, conceptually, the things to be improved and the framework against which the improvements are to be measured are collaboratively defined by the buyer and the supplier. Such an effort is hinged on a firm commitment from both sides. Commitments may include resources such as
Bibliography: 5) In each of these cases, “companies have placed not only a focus on automation and other technical improvements, but on emphasizing the relationships.” (Ravi, R. & Menzigian, K., 2003) http://solutions.epicor.com/IDCSRM/srm.pdf