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 organizations 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 We often find that any existing categorization of strategic suppliers is out of date and no longer reflects business realities.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 program. 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's 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 coaching 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 organization.

The benefits include:

  • Effective SRM service 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 profit share with suppliers creates opportunities to uncover and realize 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 organization 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.

Clarity from complexity
Case study
Clarity from complexity

Resolving complex supplier negotiations and delivering rapid savings at a leading world bank

Driving value and innovation from your suppliers
Insight
Driving value and innovation from your suppliers

When it comes to supplier management, everyone else is doing it and driving value and innovation - here's five ways you can do it too.

A recipe for success: Enabling accelerated growth at MEC3
Case study
A recipe for success: Enabling accelerated growth at MEC3

MEC3 had ambitious plans to grow its presence in the specialty ingredients market through new acquisitions.Efficio delivered immediate savings to support MEC3’s growth strategy – while transforming their entire approach to procurement.

Five lessons on reducing the risk of supplier scandals
Opinion
Five lessons on reducing the risk of supplier scandals

How to avoid a supplier-related scandal with five easy steps.

What are the dos and don’ts to improving your working capital?
Insight
What are the dos and don’ts to improving your working capital?

Getting the right approach to improving your working capital is essential if you are to achieve the quick wins you desire.

Achieving the five-year digital transformation vision
Insight
Achieving the five-year digital transformation vision

If strategic suppliers are to play an increasingly important role, selecting these partners through high-quality strategic sourcing processes will be critical.

How to win buy-in for supplier relationship management
Insight
How to win buy-in for supplier relationship management

As supplier relationships mature it’s not unusual for the value gained from re-tendering contracts to shrink. This is particularly common in high competition industries such as manufacturing, where repeated cost challenges have driven margins to low level

 Tesco and Carrefour to combine purchasing power
Insight
Tesco and Carrefour to combine purchasing power

French supermarket giant Carrefour and Tesco have announced plans to form a long-term strategic alliance to leverage their joint purchasing power with suppliers.