Our site uses cookies

I agree Our site saves small pieces of text information, called “cookies” on your device. Find out more in our cookie policy. You can disable the usage of cookies by changing the settings of your browser. By continuing to browse the site you are agreeing to our use of cookies.

Supplier Relationship Management (SRM)
There are huge commercial and business advantages to adopting a collaborative approach to key strategic suppliers.

Creating a system that will maintain and develop critical supplier relationships is not straightforward. Often what passes for Supplier Relationship Management (SRM) is a patchwork of inconsistent initiatives, unduly dependent on individual managers.

Efficio’s SRM methodology is proven across sectors and tailored to your individual requirements and priorities.

We provide support to organisations where:

  • There is no formal SRM process, or several different approaches and processes across the business
  • Supplier managers are confused about the process and its objectives, and lack the required skills and tools
  • Key suppliers appear to be underperforming, but there is no consistent way of monitoring or resolving the issues
  • Strategic supplier relationships have deteriorated back into a transactional and adversarial mode
  • Strategic suppliers find the relationship difficult or frustrating

How we work

Our starting point is supplier segmentation. We often find that any existing categorisation of strategic suppliers is out of date and no longer reflects business realities.

The team delivers a detailed report on the strengths and weaknesses of any current SRM practices. This enables you to understand the gaps between the current situation and a best in class SRM programme. Efficio’s SRM Maturity Assessment typically includes the use of questionnaires, workshops, and one-to-one interviews.

We use this insight to create a version of our SRM methodology tailored to your situation and applicable across all areas of procurement, with comprehensive guidance for user implementation. Supporting tools including eFlow  Supplier Lifecycle Management ease data processing and improve the availability of information.

Typically, Efficio will devise a pilot implementation in a chosen area to test and refine the solution. We work where possible in joint teams with your Procurement function to enable upskilling and knowledge transfer, and to obtain buy-in from Procurement staff and other stakeholders.

Clients can then implement the pilot, and after any necessary revision, roll out a single, consistent, effective SRM approach across the organisation.

The benefits

The benefits include:

  • Effective SRM leads to cost reduction both directly and in reducing the burden of dispute resolution
  • Better and deeper relationships with key suppliers improves their performance and compliance
  • The ability to gainshare with suppliers creates opportunities to uncover and realise new value. For example, through more effective working practices, or early supplier involvement in product development
  • More collaborative supplier relationships create more resilient supply chains and reduce the risk of failure

Clients

Thames Water has applied our approach, gaining consistency in segmentation and the way it deals with suppliers across the business. The organisation now has transparency as to who ‘owns’ a contract and what they are expected to do, and Procurement teams are better equipped to discuss commercial and performance matters with suppliers. Meanwhile, the tailored SRM methodology is empowering suppliers to work constructively and collaboratively with Thames Water.

For John Lewis Partnership, Efficio devised a SRM model for ‘Goods-not-for-Resale’ after JLP realised that current approaches were reactive rather than proactive, and that commercial leverage opportunities were being lost. A pilot implementation is currently under way.

How to negotiate highly engineered manufacturing products
Guide
How to negotiate highly engineered manufacturing products

Sourcing thousands of highly engineered components across the globe with high material and labour content, and high supplier change barriers is a huge challenge

Which procurement trends will drive global markets in 2017?
Opinion
Which procurement trends will drive global markets in 2017?

Efficio’s experts highlight the latest procurement developments in the Nordics, Germany, Middle East and Africa, the UK and US, and outline the changes clients need to prepare for.

Peel Ports Group drives change with procurement changes
Case study
Peel Ports Group drives change with procurement changes

How leading port operator Peel Ports Group transformed its Procurement function in order to achieve broader business objectives.

3 M&A contract separation challenges and how to fix them
Guide
3 M&A contract separation challenges and how to fix them

Recognising the common pitfalls associated with contract separation in financial services restructuring will help you plan ahead and increase your chances of a more streamlined transaction.

Financial services procurement is not just about cost
Opinion
Financial services procurement is not just about cost

Fuller and earlier supply chain management is vital to moving Procurement beyond mere cost reduction and towards greater customer and business engagement

Lloyds Banking Group’s cost reduction journey
Spotlight
Lloyds Banking Group’s cost reduction journey

The bank’s Sourcing leader explains how Lloyds shifted its focus towards speed and innovation, but why cost will always remain a key factor.

How RBS’s Procurement function improved costs and value
Spotlight
How RBS’s Procurement function improved costs and value

The bank explains how it shifted its sourcing and procurement focus towards value and innovation.

Negotiating your way to Procurement success
Guide
Negotiating your way to Procurement success

Reduce costs, and improve service and supplier satisfaction by changing mindsets and processes before and during negotiations.