Problem
With only one supplier relationship manager in place, who was focused on their single largest vendor, the client were significantly under-resourced and lacking in capability. There was no evidence of any formal or consistent framework in place meaning the majority of their strategic suppliers (those that represent high spend, risk or dependency) did not have the necessary oversight and management approach in place to ensure the contract value was being delivered.
Solution
We designed and implemented an SRM model to ensure all supplier engagement (via a meeting framework) maximised the benefit from the relationship, improved governance & decision-making and reduced exposure & risk. The solution was based on a value and risk assessment to segment their suppliers and drive the most appropriate management approach. A database was also established that provided a single source of truth for reporting purposes and freed up resource time for value-added management activity.
Results
The Procurement and SRM teams are refocussed, they understand their roles and can prioritise strategic, core relationships that will provide the most value to the business. A fully aligned SRM approach is operational, providing consistency, accurate business reporting and a significant reduction in commercial risk. With visibility of their key suppliers and their performance, the team is now able to successfully drive value across the full procurement and SRM lifecycle.
