As supply chain constraints have shifted traditional buyer-focused procurement and supply-chain systems into being more supplier-focused, some procurement experts are calling 2022 “the year of the supplier.” Businesses today are facing pressure to diversify and localize their supplier base, putting manufacturers in a stronger position.
In this new landscape, companies are increasingly adopting a supplier relationship management (SRM) approach to create better working relationships. This mindset envisions the buyer-seller dynamic as an active partnership that can bring value to your company.
When correctly implemented, SRM creates a mutually beneficial relationship where your organization and its suppliers are working together to reach common goals. It helps supply chain managers ensure safety, security, compliance, and cost savings at all stages of the process.
To adopt an effective SRM approach, four strategies suggested by operations services provider Symplr include:
- Learning about your suppliers
- Educating them about your organization
- Communicating and keeping them informed about the big picture
- Setting clear expectations and KPIs and checking on them regularly
It also makes sense that in a world where companies are highly focused on managing how customers, employees, and the general public experience their brand, they extend that focus to the supplier experience as well. In today’s supplier-focused market, some companies are going beyond SRM to practice supplier experience management (SXM), which engages suppliers through many different components like bidding, information management, communication, insights, and support.
Organizations can improve the experience they offer to suppliers by creating an SXM road map, mapping out supplier journeys through your systems, designing a supplier communication plan, and adopting new digital solutions, among other steps, according to a recent article by global management consulting firm Kearney.
Ultimately, it’s no longer sufficient for companies and product suppliers to adopt distinct buyer and seller roles. In the new supply chain environment, both must be focused on developing authentic partnerships to succeed.
Dynamic stands ready to help you with this process and serve as a true strategic partner in your supply chain’s success. We acquire products only through OEM-authorized channels. Our expertise and connections with more than 800 technology providers can help your company realize supply chain savings and plan ahead for important events including product End of Life (EOL).