2015_Global SRM Research Report - Supplier Relationships

Working in a spirit of partnership means embracing the idea that

both parties will grow their businesses together . It creates an

atmosphere of goodwill that makes it much easier to adopt the

flexibility that is becoming ever more critical to business success . It

makes it easier , for instance , to vary a contract whether in response

to changing market conditions or the wish to innovate .

Creating this sort of partnership approach takes leadership . SRM is

not something that can be parcelled up , handed to the procurement

department and then ignored by everyone else . It must be

embedded in the culture and values of the company . As it is the

senior team that shapes that culture , it must be the senior team that

leads the way on promoting SRM . If there are internal barriers

preventing this , it is the senior team that should constructively break

them down .

Any chief executives that are struggling to grasp why they should do

this , or exactly what value SRM brings to their business , should take

responsibility for doing whatever is needed to gain that

understanding . In my experience the main reason why SRM is not

given the C - suite attention it deserves is that time - constrained

senior executives fear getting into the detail of supplier

arrangements . This is easily overcome thanks to technology that

now makes it much more straightforward for senior executives to

access supplier information in a succinct and relevant way .

With this information , supported by strong and genuine supplier

partnerships , business leaders will be able to position themselves

and their companies to grasp the multitude of opportunities that

the innovation revolution is bringing with it .

Without it , they should prepare to see their company struggle to

thrive , or even to survive .

Iain Rawlinson is the managing partner at Rawlinson Partners

Limited and chairman or director of a number of organisations . He

was executive chairman of The Monarch Group from 2009 to 2014 .

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