Supplier Relationship Management

Unlocking the Value in Your Supply Base

Jonathan O'Brien

• Publisher: Kogan Page
• Year: 2022
• ISBN:
  9781398602267
• Edition: 3
• Topic: Business
• Subtopic: Operations
• Index: Business

Effective supplier relationship management enables organizations to unlock value from their supply base and reap tangible benefits. With practical tips and a proven approach, this is the guide to understanding how to maximize the potential of suppliers to gain a competitive advantage, get more innovation and drive sustainability. Supplier Relationship Management explains the importance of ongoing supplier management, how to measure and improve their performance, and for the critical few that can make a dramatic difference to our organization, drive in and future-proof strategic collaborative relationships. The Orchestra of SRM® framework, coupled with expert tips, tools and resources, delivers clear guidance on how to design an effective supplier relationship management program, with maximum return on time and investment.Written by leading procurement expert, Jonathan O'Brien, this third edition offers new content on how to adapt to the huge changes we have seen across supply bases in recent years, and the new risks and challenges organizations face in managing key suppliers. It includes new information on driving sustainability, the future of the supply base, and how to secure more innovation from our suppliers. Supplier segmentation is outlined in more detail and there is new information on how companies are managing supply chains, and the impacts of this in practice. A practical guide to unlock the new value from your key suppliers in a changing world.

Index

Italics indicate figures or tables.

acting upon measurement 173–98

gauging the supplier’s appetite for improvement 180–81, 182, 183, 183, 184, 185

how much improvement? 173–76, 177, 178, 179, 180

learning from common improvement methodologies 188–98, 189, 197

making them want to … 186–88

Adams, C 130

Balanced Scorecard 126, 134 see also Cousins, R

Barnes, C 61

the Beatles 418

Bell, A G 411

Bevir, M 425

building a supplier performance measurement system 137–72

the SPM system 137–40, 142, 138, 141

five steps to put SPM in place with a supplier 140, 141, 142

reasons SPM systems fail 138–39

ten characteristics of best practice SPM 139–40

Step 1: determine the SPM aim 142

1. oganizational aims 142

2. supplier-specific SPM aims 142

Step 2: supplier-specific requirements and targets 142–45

climbing the mountain 143–45

Step 3: determine KPIs 146–51

definition of KPIs 151

key performance indicators (KPIs) 149–51

looking back, looking forward 145, 146, 147

measures vs indicators 147–49

the most important things cannot be measured 149

service level agreements (SLAs) 151

Step 4: measurement system design 151–64

collecting and analysing data 159–61, 162

measurement system responsiveness 162–63

measuring processes, practices, behaviour and culture 159

SPM system maturity 163–64

two-way measurement 152, 158–59, 153–57

what data to collect 152

Step 5: SPM outputs 164–72, 168–72

the importance of sharing 171–72

making outputs compelling 168–69, 169, 170, 171,

the perfect dashboard 164, 165, 166, 167–68, 167

the perfect scorecard 164

Category Management in Purchasing 393, 448 see also O’Brien, J

Chains 421 see also Karinthy, F

Chao, C M 377, 378–79

Choi, T Y 56

contract management 263–86

contract management (and) 275, 276, 277–80

directing resources 278

driving performance and ongoing improvements 279, 280

key questions 275, 277

ongoing management of contractual arrangement 279

as part of supplier management within SRM 277

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