SIX PILLARS OF SRM
Value
A clear value proposition aligned to strategic objectives driving collaborative initiatives and culminating in measured financial and non-financial benefits.
What are your strategic objectives? To what extent are you dependent on the contribution of third-party suppliers to achieve them? What more could you be doing with your most important and strategic suppliers to help achieve those goals? These are among the questions which help establish an SRM value proposition. Then, it’s a question of working with the supplier to understand
exactly what you can do together, both within existing contracts and beyond. Read more on page 20.
Engagement Achieving and maintaining strong internal and supplier engagement and support throughout the SRM lifecycle. Is your SRM programme a business change programme with a large footprint outside procurement? How engaged and supportive of SRM is the C-level team? How do you get buy-in from business and operational managers who deal with suppliers day-to-day? How will you engage suppliers more in the process? The answer to all three questions lies in a strategy for stakeholder engagement and support. Read more on page 28.
Six Pillars of SRM
Governance An effective and efficient supplier management and governance approach that is differentiated based on the output from a segmentation process. How do you decide which suppliers are truly strategic?
What decision making criteria should you be using? What are the best process, governance and engagement models to apply? Are roles and responsibilities properly defined? Is contract, performance and risk management sufficiently robust? These questions help create strong SRM governance. Read more on page 40.
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STATE OF FLUX
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