in managing the organisation's reputation and bottom line. Decisions made in supplier relationships often involve significant financial, legal and operational risks, making SRMs an integral part of organisational resilience. 4. Not supported by contracts : Unlike internal managers who benefit from all employees having standard employment contracts and HR support in aligning team behaviour, culture and goals, SRMs work within rigid supplier contracts that emphasise deliverables and service levels rather than behavioural and cultural fit or shared goals. Impact on customer experience and business value When looking at the extended enterprise, supplier relationships are not just about cost savings and transaction fulfilment. They are a key part of the organisation's value creation strategy and customer experience delivery. • Customer experience and competitive advantage: As the extended enterprise research report reveals, on average 50% of the customer experience is delivered by suppliers. When a supplier delivers critical elements of a product or service, they shape customer perceptions as much as the organisation’s own employees. SRMs are therefore essential to ensure that the supplier meets high standards, not only in delivery, but also in customer interaction and responsiveness. A lapse on the part of the supplier reflects poorly on the organisation's own brand, underlining the role of the SRM in maintaining a seamless, high-quality customer experience. • Operational resilience and risk management: With an average of half of an organisation’s workforce typically employed through suppliers, SRMs play a crucial role in operational resilience. They are responsible for ensuring that these external teams have the resources, alignment, and commitment needed to support the company’s mission. In the event of a disruption—such as supply chain issues, regulatory changes, or economic shifts—SRMs act as the frontline coordinators, managing risk and adapting strategies to ensure minimal disruption. • Innovation and strategic growth: Suppliers are increasingly seen as partners in innovation. SRMs foster collaboration and co-innovation with suppliers, leveraging the supplier’s expertise to enhance offerings or improve operational efficiency. This collaboration can drive product improvements, enhance supply chain sustainability, or reduce costs, giving the organisation a strategic edge.
Powered by FlippingBook