Supplier Relationship Management Benefits

Managing your suppliers effectively is an essential part of avoiding supply chain disruption. When your suppliers don't perform the services you've paid for, it can have a significant impact on your business. For example, customers might not receive their orders, which will damage your reputation. Having a supplier relationship management (SRM) system in place mitigates supply-side risk and provides you with insights to reduce costs.

Supplier relationship management is the process of maximising your suppliers’ performance, so you receive the highest value from your contracts. It includes:

·       segmenting suppliers and categorising them based on importance to your business

·       developing a supplier strategy on how you’ll work with them

·       identifying risks and putting a plan in place to mitigate them

·       implementing the supplier strategy

·       monitoring supplier performance

supplier relationship management- supplier usage graph

Businesses often have many suppliers. If you are keeping manual records, it can be challenging to keep track of all the data they generate. By using  supplier relationship management software , you can centralise your supplier data and use it to evaluate supplier performance.

supplier relationship management- supplier risk vs total contract value chart

The benefits of supplier relationship management

Improve supplier performance

Regularly reviewing your suppliers’ performance will ensure your business is getting the best value from the relationship. The foundation for performance monitoring is your contracted Service Level Agreements and KPIs, which identify exactly what you expect from your suppliers. Suppliers are more likely to execute their contractual obligations if you habitually review their performance. Holding regular meetings improves communication and can flag up issues early so you can take preventative measures to reduce the impact on your business. SRM software will schedule reminders for meetings and periodic risk reviews to help you maintain your supplier relationships.

Enhances supplier communication

Regular contact with your suppliers helps them to get to know your business and improve the service they provide. A free exchange of information and ideas will benefit your customers as it can help you resolve issues quickly. Supplier involvement can often boost innovation as they view problems through a different lens and can offer different solutions. Providing a central communication channel, such as an online portal, reduces missed or miscommunication issues. Details of communications and documentation relating to the supplier relationship are held centrally in the portal and can be referred to at any time.

Increases operational efficiencies

SRM can improve your team's productivity. Automating routine tasks leaves less room for error, and your employees can concentrate on more complex tasks. Holding all your supplier information in one place will save you time as it will be easily accessible when you need it. Having a list of pre-approved suppliers can improve efficiency and save your employees' time. The approval process for buying goods from these suppliers is much shorter as they have already been through your due diligence process.

As you build a relationship with a supplier, they will gain a greater understanding of your business and meet your needs more effectively. And, if issues arise, they’ll be more likely to resolve them quickly if you have a good relationship with them.

Strengthens risk management

Your SRM will help you manage risk on a day-to-day basis. You can create a risk profile, using criteria specific to your business, for example, IT security or compliance with regulatory requirements. Your risk profile will then trigger reminders for actions to be taken and set out the approval process for supplier management workflow. You'll also be able to segment your suppliers so you can easily identify high-risk contracts and manage them effectively.

supplier relationship management- supplier performance graph

Why use the Atamis Supplier Relationship Management procurement solution?

Atamis SRM helps you maximise the output from your key supplier relationships. Our extensive, intuitive system will help you improve your procurement team’s productivity and reduce supplier risk.

Removes inefficiencies: centralised document repository enables fast analysis of data and insights into performance issues.

Saves time: you can generate reports in real-time and access documents quickly and easily.

Risk management: Atamis SRM allows you to manage the risk across your supply chain, including secondary suppliers.

Effective communication: share all relevant information with your suppliers through an online portal which also allows them to upload documentation and communicate with you.

Performance management: you can create custom dashboards which show how your suppliers are performing against agreed KPIs.

Find Out More

Please also see Features of Atamis SRM , visit the  Resources  page   to access case studies and white papers, or click  here   to download our brochures.

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