Simple Solutions That Work! Issue 18

SRM software sets suppliers up for success by creating an environment where they can do their best work. At the heart of SRM software is the interaction of people, which is why integration strategies need to be deployed for the tool to be successful. Supplier Relationship Management embodies the core principle of collaboration and innovation but takes it a step further to drive real value for everyone. Making sure the software tool fits is key to successful implementation. SRM software seeks to identify and remove friction points actively: As such, it is a pragmatic approach. This radically improves the experience for buyers and suppliers. It frees up their time and resources to do their best work. SRM is a logical step for competitive advantage. A strong cultural mindset and SRM software will foster the right environment for mutual success. Sourcing and purchasing efficiencies will grow, and supplier transparency will dramatically improve. Happy and motivated suppliers who face fewer obstacles will be better placed to mitigate risks and optimize advantages on buying the organization’s behalf to benefit the end customer and operational efficiency will thrive. SRM software goes beyond Procurement: The notion of end- to-end has broadened from a Procurement based ‘sourcing to contract’ process to being more relevant across the organization. As Supplier Relationship Management is fully cross- functional, it benefits the business holistically. SUPPLIER RELATIONSHIP MANAGEMENT SOFTWARE FRAMEWORK Determining the organization’s level of supplier centricity can be measured through two factors. First is the cultural mindset, in which everyone must acknowledge that all suppliers, not just a strategic few, should have collaborative experience. This benefits suppliers, buyers, sourcing specialists, and senior management. A business does this by ‘putting themselves in their suppliers’ shoes,’ removing consistent pain points, and ensuring internal teams work cross-functionally so that suppliers’ experience is truly end-to-end. The second factor is adopting a technological framework that ensures a supplier- focused approach. Organizations should make it as easy as possible for their suppliers to collaborate. A software tool needs to allow not only buying organizations but Continued on next page 29 HOW TO ISSUE