In SRM We Trust

The August 2009 edition of Procurement Professional features a supplier performance management article by consultants Lisa Malone and Robert Pease from The Faculty Management Consultants entitled In SRM We Trust.

The article argues that while conceptually there is a broad understanding of Supplier Relationship Management there is a general view that SRM programs often deliver less than expected.

Working in response to a question from The Prourement Roundtable - a group of high performing Chief Prcourement Officers (CPOs), the Faculty conducted a review of over 15 strategic supplier relationships operating within structured SRM programs.

Examining the higher performing supplier relationship management programs revealed 4 key elements of which Trust is the 'game changer'

Governance - a formal governance structure for the supplier relationship with strong executive sponsorship and cross-functional involvement

Strategy - Business goals aligned with working strategy and aimed towards the highest mutually beneficial outcomes

Process - Tools and templates to facilitate the client / supplier relationship that are jointly developed and understand, and

Trust - Employees at all levels understand the strategy for the relationship, demonstrate collaborative behaviours and work to build organisational trust

 The research concludes that:

" ...in order to fully realise its potential, successful supplier relationship managment programs must focus on fostering all four elements simultaneously". 

And

" ... focussing on governance, strategy and process will inch the program forward but without trust it will never realise the full potential of the relationship".  

The article is available for dowload, here 

Author: Derek Groom (Decideware)