Answer to Question #221143 in Management for Thandi

Question

Discuss any five major Supplier Relationship Management (SRM) processes that US retailers would adopt to improve their operations. 

Answer 1

Identify Internal Risks and Recalibrate

The most successful vendor relationships begin with an in-depth examination of the company's internal operations. It is in your best interests to identify potential supply chain issues early on so that you can minimize business risks. Work with your suppliers to identify potential risks in your business relationship and the best ways to address them before they become a stumbling block.

 Work on a Solid Supplier Relationship Agreement

Any supplier relationship and business arrangement entails obligations for all parties involved. Both you and your supplier must be aware of your obligations to your clients and end users. Understanding your responsibilities and keeping lines of communication open will help you and your supplier build a strong partnership that will benefit both of your businesses. A transparent and consistent Supplier Relationship Agreement includes product definition, price, payment terms, delivery terms, and agreement period.

Make the Most of Technology

Without a doubt, technology is the driving force in today's world. Companies that want to compete in the sourcing arena must employ a wide range of technologies. Provide a technology network that encourages and supports accountability and productivity. A vendor self-service portal, for example, enables them to review purchase orders, update contact information, send invoices, and respond to RFPs. It's an excellent way to improve accountability in your supplier relationships while also keeping an audit trail of operations to avoid misunderstandings.

Make an effort to comprehend your suppliers.

Organizations are more than just the goods and services they offer. When considering how to improve your supplier relationships, consider the entire essence of what makes your vendor tick. This includes, but is not limited to, their company's mission and value statement, social media activity, philanthropic efforts, business credibility, history, future aspirations and priorities, and so on. Several of these market components can be discovered without involving a third party.

Working with a supplier will be easier if you have a good understanding of them. If you have a deeper understanding, you will be able to work through problems and build a stronger relationship.

Establish a Clear Communication Channel

Open lines of communication are critical in supplier relationship management. Maintain open lines of communication with your suppliers to keep them up to date on your goals and plans, to provide input, to commend them, and to let them know if anything isn't working in your relationship. When you keep lines of communication open with your suppliers, they will see you as a partner rather than a customer. They'll also be able to see how they fit into your overall strategy and how they can assist your company in meeting its goals. That is advantageous to both your and their businesses.