Supplier Relationship Management

Supplier Relationship Management (SRM) summarizes all activities, which enable a more efficient, better, quicker and cheaper development, production and provision of products by better collaboration with suppliers and their sub providers. With this definition it becomes clear that with SRM not only the strategic process of purchasing but the whole enterprise profits and therefore its position on the market can and should be improved.

The success of good SRM is directly visible with faster access to markets, more innovative processes and products, cost reduction and targeted choice of suppliers and materials and lastly, but not the least important, sinking failure costs.

Many arguments are invoked not to establish SRM or often to reduce to minimum supplier evaluation which just meets the least standards asked by audits. In the center of the arguments mainly stand operative reasons such as lack of resources regarding know how, time, budgets, IT infrastructure and personnel. Also missing communications across divisions and vague target definitions impede the implementation of SRM as well as lack of transparency in failure costs and spending behavior being the basis of every target-performance comparison.

A view of the external environment of an enterprise would not leave any doubt that SRM is certainly necessary. Nearly all of today’s enterprises are exposed to risks, which on one hand come from the outside and cannot be influenced but on the other hand can be self-induced. From the outside, volatile procurement markets, insolvency of suppliers and the constantly rising pressure to speed up development and innovation have an impact on the enterprise. Self-induced difficulties can reduce the depth of added value in many companies thus increasing dependency on suppliers.

With the SC-Manager, Simmeth System offers a flexible software solution, which is adapted within a few easy steps to suit your company’s strategic development. Its modularity assures that your SRM is supported and optimized to the greatest possible extent on those areas you consider strategically important. Above all, these projects assure an excellent return on investment through the immediately beneficial effect of process improvements.

Content, performance measurement, selection criteria, integration of both workflows and departments into the decision processes can be implemented exactly according to your specifications in a very short time. These intuitive tools assure that the software is a useful day to day tool for all users goes without saying.

SRM gives control of the whole supplier life cycle: from the first registration of potential suppliers to their prequalification as well as the control and management of existing suppliers using the core process of their evaluation and requalification to assist in supplier relation development. You monitor the overall view by using concurrent procurement performance indicators and our on-line procurement control system. Additional tools such as document administration and supplier product rejection management, as well as strategic tools such as material group management, enable the construction of a centralised, all-encompassing procurement information system within your enterprise.

Your immediate return on investment:

  • A centralised database SRM solution creating all around, immediate transparency
  • A centralised database SRM solution is the basis for creating a professional SRM
  • Modular tools provide lean projects, low costs and fast success
  • Modular tools allow sub projects such as supplier evaluation to be set up as ‘stand-alone’
  • Extensibility from supplier evaluation to SRM to an all-around procurement information system
  • Integrated steering of workflows creates immediate process improvements
  • Integrated automated creation of analyses and reports instantly save a lot of preparation efforts

Demo videos you’ll find on ourSimmeth System YouTube channel

Interested in further details? Please do contact us or visit one of our webinars.