Key benefits of Supplier Relationship Management | SRM strategy​

Nowadays, procurement managers realize that developing long-term partnerships with sustainable suppliers can mutually benefit both parties: the purchaser and the supplier. Before, the businesses haven’t emphasized their efforts on building consistent SRM strategy because they were mainly focused on developing customer relationships and cutting down costs. But today, companies recognize the sufficient benefits delivered by the implementation of the supplier relationship management approach.

Let’s review the key benefits of SRM.

 

1. Procurement process optimization

Implementation of the SRM approach enhances communication and cooperation with the suppliers. The constant intercommunion allows the suppliers to understand the company’s needs, while the company can easily evaluate the capabilities of a supplier to fulfill the order when needed. Consequently, the suppliers would be able to faster accomplish the orders. Order issues are reduced, and if there arise any issues, the well-established relationships between two parties will make it much easier to resolve them. This results in shortening order fulfillment timeframe and increasing customer satisfaction since the company would be able to provide the products or services to the customers at the moment they need them.

 

2. Cost reduction

Sufficient costs are involved in conducting transactions with new suppliers. A supplier relationship management approach can eliminate a significant portion of these costs. 

By establishing win-win relationships with key suppliers, the company gets the opportunity for cost savings on a long-term basis. Appropriate attitude toward the suppliers besides delivering cost savings will also shorten quality problems, delays, and product availability issues.

Also, by implementing the SRM approach and establishing long-term relationships with suppliers the company will be able to reduce costs by negotiating better prices.

 

3. An intensified supply chain

As both parties: purchaser and suppliers work together they better understand the working processes of each other. 

Sometimes, the parties adopt each other’s prosperous working and operations practices, which leads to efficiency enhancement and operational advantages. 

A strengthened supply chain enables the purchasing managers to create a list of sustainable and preferred suppliers, and shorten the overall number of suppliers they work with. This makes the budgeting and planning process much easier.

In addition, the SRM approach implementation brings transparency into the supply chain network by providing visibility to the performance of suppliers and developing clear communication with them.

 

Acquirell enables companies to digitize and centralize their supplier relationship management workflow by controlling all their interaction with suppliers within Acquirell’s SRM module. Acquirell’s SRM module possesses quick and easy onboarding during e-sourcing events and importing business contacts as well as during checking for compliance with the company’s requirements for the quality of goods or services. 

Submit your request via this form and we will create shortly a test account for you to discover Acquirell’s SRM module capabilities.