Supplier Relationship Management Strategies (Strategy Brief)

Publication Date	January 2007
Publisher	Datamonitor
Product Type	Report
Pages	9
ISBN Number	not applicable
Product Code	DAT04308

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Summary

Introduction

This strategy brief looks at the intentions of manufacturers to work with their suppliers more closely to reduce overall spend, and improve business performance.

Scope

Looks at areas such as sourcing, procurement, supplier performance in relation to business level strategy.
Identifies the actions of manufacturers as they try to reduce costs from their supplier relationships.

Highlights

As a company starts looking to extract cost savings from supplier relationship management, it stumbles across some of the most seemingly basic, yet actually very intricate, questions. Who do we buy from? What are we buying? Who is responsible for the purchase? How much are we buying? What did we pay?

Reasons to Purchase

Understand the problems associated with supplier relationships and how they affect business performance.
Identify the key areas where manufacturers are investing to streamline supplier-related processes.

Content

Catalyst
Summary
Methodology
- AnaLYSIS
- Identification and basic spend analysis are the starting point for SRM strategies
- Identifying those internally who are spending is key to understanding enterprise procurement
- Manufacturers are seeking to find out exactly who their suppliers are
- What is being bought remains a fundamental issues of improving spend
- Tracking the performance of suppliers can help manufacturers improve their relationships
- Key performance indicators form the basis of performance monitoring
- Accessing, displaying and sharing performance data is the key to extracting real benefits for manufacturers
- Procurement is where manufacturers stand to gain the most benefit from SRM
- Reducing rogue spend can affect a manufacturer's bottom line in a relatively short time
- Identifying the best suppliers, and then working with them, is the obvious step for manufacturers
- Contract management remains a key issue for companies looking to improve their procurement processes
- Strategic sourcing has been a hot topic, but it isn't for low-cost regions alone
- Low-cost region sourcing can yield significantly lower cost bases
- There are other areas of strategic sourcing that don't focus on low-cost regions
Appendix
- Definitions
- Extended methodology
Further reading
- Ask the analyst
List of Figures
- Figure 1: Top concerns of 155 European and North American manufacturers (2006)