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 We often find that any existing categorisation of strategic suppliers is out of date and no longer reflects business realities.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

Brexit: How do you deal with currency volatility?
Insight
Brexit: How do you deal with currency volatility?

In an article originally published in Supply Management, Sushank Agarwal and Ben Lambert of Efficio discuss how Brexit-related currency fluctuations are making supply chains more expensive.

Local content in the Middle East: What you need to know
Insight
Local content in the Middle East: What you need to know

What is local content policy in Saudi Arabia and the Middle East? How does it affect procurement, supply chain, contracts and business operations?

Six ways manufacturers can save on direct spend
Insight
Six ways manufacturers can save on direct spend

Mid-sized manufacturers can struggle with direct spend management – we look at six key challenges and how to overcome them

A path to better public sector supplier performance
Opinion
A path to better public sector supplier performance

What does best-practice supplier performance management look like in the public sector? Andy Quincey shares insights from his time at DEFRA and TfL

Can public sector procurement get a grip on SRM?
Opinion
Can public sector procurement get a grip on SRM?

Better supplier relationships and innovation are needed to transform public sector services, says DEFRA and TfL procurement expert, Andy Quincey

How procurement boosts customer experience at John Lewis Group
Interview
How procurement boosts customer experience at John Lewis Group

CPO Paul Bestford reveals how the John Lewis Partnership has benefited from a more creative approach to supplier relationship management

Expert view: the latest procurement trends in your region
Opinion
Expert view: the latest procurement trends in your region

What are the key procurement developments in the UK, US, Germany, Nordics, Middle East and Africa? And what should CPOs do about them?

Maximum performance: Supplier relationship governance and oversight
Case study
Maximum performance: Supplier relationship governance and oversight

Efficio supported the development and implementation of a new supplier relationship management tool to increase performance at UKAR.