CASE STUDY / ROYAL MAIL
TECHNOLOGY / ADVERT
Do you use SRM technology to ensure a consistent supplier experience across your business? Good SRM technology not only focuses on supplier relationship, performance, risk, contracts and innovation but also ensures you to have a standard approach and way of managing supplier relationships across your entire organisation. Use Statess, State of Flux’s award winning SRM technology to help ‘industrialise’ and standardise SRM activities across your organisation and drive a consistent supplier experience.
“We have attempted SRM before, but we tried to do it without getting building blocks in place. We have looked to work with our top ten suppliers using SRM but then found it was not scalable. It was seen as something we were doing to the business, and not involving them in it. There was no collaboration with them. Now we have their input in contract management, we get engagement, and that has made it a success. “What we have delivered with the programme is unprecedented within Royal Mail – transparent, visible, consistent contract management reporting across all our key supply chains. Getting the foundations right is fundamental to the success of effectively managing supplier relationships,” Wilber says. With a sound platform for contract management, the Royal Mail procurement team is demonstrating that it can deliver results at an enterprise level, providing the business with assurance on supplier risk, performance and sustainability that modern multi-billion-pound businesses need.
responsibility in the supply chain, Wilber says. Initiatives tracked via the portal include the rollout of electric vehicles to the fleet, and compliance with the Modern Slavery Act 2015, particularly among higher risk sectors including suppliers of catering, cleaning and uniforms. Royal Mail prioritises suppliers based on their importance to the business and level of risk. The procurement risk register lists the risks that are deemed critical to the business and supply chain. Using the contract management system to identify suppliers with a high sustainability risk, Royal Mail then undertakes mitigation activities, such as enrolling them on the Suppliers Ethical Data Exchange (SEDEX), an online platform that tracks environmental, social, and ethical governance performance, including through third-party audits of these suppliers. Royal Mail’s approach to supplier management has seen recognition in the shortlist for Best Process Improvement Initiative at the Chartered Institute of Procurement and Supply annual awards.
The groundwork for SRM
Progress in contract management is also set to lay the groundwork for the implementation of supplier relationship management at Royal Mail, Wilber says.
+44 (0)2078 420 600 enquiries@stateofflux.co.uk www.stateofflux.co.uk
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STATE OF FLUX
2018 GLOBAL SRM RESEARCH REPORT
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