Srm Presentation


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Supplier Relationship Management. Topics why srm? what srm? how srm? srm process, srm opportunities/advantages, srm strategies are covered.

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Srm Presentation

  1. 1. SUPPL İ ER RELAT İ ONSH İ P MANAGEMENT Prepared by: Uğur Demir Sayım ( [email_address] ) Fahrettin Kerem Bozbıyık ( [email_address] ) Muhammed Akgün ( [email_address] ) Instructor : Assoc. Prof. Dr. Gonca Telli Yamamoto
  2. 2. INTRODUCT İ ON <ul><li>SRM is a discipline of working collaboratively with those suppliers that are vital to the success of your organization, to maximize the potential value of those relationships. </li></ul><ul><li>SRM is critical to any organization while s suppliers can directly impact the financial performance and profitability of a buying enterprise, as they influence product development costs, inventory levels, manufacturing schedules and the timeliness of delivery of goods and services. </li></ul>
  3. 3. WHY SRM? <ul><li>What Is The Problem With Suppliers? </li></ul><ul><ul><li>Unclear expectations </li></ul></ul><ul><ul><li>Not mutually beneficial(Win-Win) </li></ul></ul><ul><ul><li>Buyers multi-supplier environment </li></ul></ul><ul><ul><li>Miscommunication </li></ul></ul><ul><ul><li>Poor governance </li></ul></ul><ul><ul><li>Poor cultural fit </li></ul></ul><ul><ul><li>Lack of coordinated management </li></ul></ul>
  4. 4. WHY SRM? <ul><li>An effective SRM gives your organization a competitive power to: </li></ul><ul><ul><li>W ork with suppliers to reduce direct and indirect costs and improve service. </li></ul></ul><ul><ul><li>Product/service agreements are developed and managed with key suppliers </li></ul></ul><ul><ul><li>Goal is to improve the profitability of both the focus company and the suppliers. </li></ul></ul><ul><ul><li>U nderstand what purchase an d from whom : Purchase order transactions are integrated with the supply process to improve productivity and all areas of supplier performance </li></ul></ul><ul><ul><li>Strengthen t he supply-chain management process by collaborating with your company and suppliers </li></ul></ul><ul><ul><li>Select the best suppliers to gain advantage over competitors </li></ul></ul><ul><ul><li>Minimize the risk of supply chain </li></ul></ul><ul><ul><li>Assure that your organization's resources are prioritized on the most critical suppliers </li></ul></ul>
  5. 5. WHAT’S SRM? <ul><li>In many industries today, the trading partners that supply your operations dictate over 60 percent of the cost of goods you sell. Thirty years ago, this figure was half as much. </li></ul><ul><li>So it is more important than ever to evaluate these expenses and related costs, increase the efficiency of your supply processes and enforce compliance with corporate purchasing strategies. </li></ul>
  6. 6. WHAT’S SRM? <ul><li>Obviously, Supplier Relationship Management refers to provides visibility across the entire supply base to help you increase the value of your business relationship. </li></ul><ul><li>Purchasing patterns can be analyzed and anticipated, sourcing cycles can be compressed and collaboration can take place in real time. </li></ul><ul><li>The result is lasting relationships with suppliers that have proven their ability to deliver value. </li></ul>
  7. 7. WHAT’S SRM? <ul><li>If I want to easily define SRM and what provides to our business that; </li></ul><ul><ul><li>supports the request for quotation process and other communications-intensive business necessities , </li></ul></ul><ul><ul><li>It provides a medium for collaboration and helps you analyze the entire spectrum of purchasing operations , </li></ul></ul><ul><ul><li>It allows you for the first time to truly examine your procurement practices and find out which suppliers are contributing the most value . </li></ul></ul>
  8. 8. HOW SRM? <ul><li>Procurement; </li></ul><ul><ul><li>is the process of supplying/obtainin materials and products from outsdie supply source </li></ul></ul><ul><li>Supplier; </li></ul><ul><ul><li>can be people companies, institutions and organizations that are submittingg goods or services which are going to be purchased. </li></ul></ul><ul><li>Required activities of the Supply Process </li></ul><ul><ul><li>Which are quality of goods, security, storage and placement, inside and outside company transportation, locating supply sources… </li></ul></ul><ul><li>Responsibilities of the Procurement function </li></ul><ul><ul><li>Determining the limits of supply source, getting them together, and continionus. </li></ul></ul><ul><ul><li>Making research for new supply sources. </li></ul></ul><ul><ul><li>Providing coordination with supply sources. </li></ul></ul>
  9. 9. HOW SRM? <ul><li>Selection and assesment of supplier </li></ul><ul><li>Organizing good communication btw. Sellers & buyers </li></ul><ul><li>Ensuring the integration btw. Firms within supply chain </li></ul><ul><li>Simplifiying and standardizing the process of order, loading, transportation, etc.. </li></ul><ul><li>Correctly identifiying the supply chain relationship </li></ul><ul><li>Seetting the information effectiveley wich is to be shared </li></ul>
  10. 10. HOW SRM? <ul><li>7. Setting up the SRM BT(Software) system. </li></ul><ul><ul><ul><li>The software system should recognize the opportunity for real-time data transfer </li></ul></ul></ul><ul><ul><ul><li>To minimize the human factor by automating data entry as much as possible. </li></ul></ul></ul><ul><ul><ul><li>Software system should be active all time. </li></ul></ul></ul><ul><ul><ul><li>The software for supply cahin managemenet should be easiliy integrated to other software project in the company. </li></ul></ul></ul><ul><ul><ul><li>All data from different sources migth be processed correctly. </li></ul></ul></ul><ul><li>8. Social activities within the supply chain companies </li></ul>
  11. 12. SRM OPPORTUNİTİES <ul><li>I want to explain the SRM opportunities in a three descriptive words in expansion manner below given such as; </li></ul><ul><li>1. Evaluate </li></ul><ul><ul><li>Supply strategy development : Improve visibility across multiple lines of business to identify and rationalize duplicate contracts and facilitate informed negotiation with vendors . </li></ul></ul><ul><ul><li>Supplier qualification : Reduce risk of supply and shrink buffer inventory with reliable and expedited processes for supplier discovery and qualification . </li></ul></ul>
  12. 13. SRM OPPORTUNİTİES <ul><ul><ul><li>Supplier selection: Compress sourcing cycle times with a variety of auction and bidding techniques that match supplier capabilities with sourcing requirements . </li></ul></ul></ul><ul><ul><ul><li>Contract negotiation and management : Collaborate among project teams to edit documents, conduct meetings and negotiate business deals while ensuring total security . </li></ul></ul></ul>
  13. 14. SRM OPPORTUNİTİES <ul><li>2. Enable </li></ul><ul><ul><li>Supplier self services : Drive supplier participation and increase responsiveness by enabling suppliers of all sizes to process orders, generate invoices and update specifications . </li></ul></ul><ul><ul><li>Content management : Create, synchronize and maintain content across your internal and external supply base to lower the cost and increase consistency of distributed content . </li></ul></ul>
  14. 15. SRM OPPORTUNİTİES <ul><li>2. Enable </li></ul><ul><ul><li>Operational sourcing : Increase sourcing process efficiency by using approved vendor lists to select an appropriate source of supply for unassigned demand . </li></ul></ul><ul><ul><li>Self service procurement : Ensure compliance by decentralizing the process while maintaining central control, allowing purchasing professionals to focus on managing relationships instead of transactions . </li></ul></ul><ul><ul><li>Plan driven procurement : Integrate supply chain management with execution and fulfillment to automate contract determination and purchase order generation for materials used in core business processes . </li></ul></ul><ul><ul><li>Relationship monitoring : Manage total spend through close monitoring and benchmarking of supplier relationships and operational performance . </li></ul></ul>
  15. 16. SRM STRATEGIES <ul><li>An active SRM Strategy, make positive impact for company’s activity of production and marketing. </li></ul><ul><li>For the success of SRM, well designed strategic road map should be necessary. </li></ul><ul><li>The SRM strategy should follow these rules; </li></ul>
  16. 17. SRM STRATEGIES <ul><li>Determining the supply and purchasing strategies. </li></ul><ul><li>Working procedures with suppliers should be planned. </li></ul><ul><li>Selection of suppliers and evaluation criteria </li></ul><ul><ul><ul><li>Evaluation of Certificate, business knowledge and experience in the sector </li></ul></ul></ul><ul><ul><ul><li>Evaluation of Price level </li></ul></ul></ul><ul><ul><ul><li>Product & service quality evaluation </li></ul></ul></ul><ul><ul><ul><li>Suppliers working styles and attitudes and also company’s business culture. </li></ul></ul></ul><ul><ul><ul><li>Capability and adequacy of accomplishment of agreement. </li></ul></ul></ul><ul><ul><ul><li>Financial situation of suppliers </li></ul></ul></ul><ul><ul><ul><li>Flexibility and technical competence of of supplier. </li></ul></ul></ul>
  17. 18. SRM STRATEGIES <ul><li>Management of contracts with suppliers to do </li></ul><ul><li>Look towards the same strategic objectives with suppliers. </li></ul><ul><li>Establishment of proper communication with suppliers. </li></ul><ul><li>Strengthen the supplier: </li></ul><ul><ul><li>Give respect to your suppliers </li></ul></ul><ul><ul><li>continuity of accurate communication with suppliers should be established </li></ul></ul><ul><ul><li>Visit the suppliers and invite their teams to your company. </li></ul></ul><ul><ul><li>Presentations should be organized between group companies or supplier, describing successful applications. </li></ul></ul>
  18. 19. SRM STRATEGIES <ul><li>Evaluation of Suppliers </li></ul><ul><ul><li>Production capacity. </li></ul></ul><ul><ul><li>Profitability ratio. </li></ul></ul><ul><ul><li>Location of suppliers. </li></ul></ul><ul><ul><li>Production Quantity Performance </li></ul></ul><ul><ul><li>Delivery Performance. </li></ul></ul><ul><ul><li>Integration of SRM development program. </li></ul></ul><ul><ul><li>Quality, Price, Packaging adequacy </li></ul></ul><ul><li>Evaluation of other suppliers which are c candidate for your supply chain. </li></ul>
  19. 20. <ul><li>That’s all, END . </li></ul><ul><li>Thanks for your patience... </li></ul><ul><li>… .. </li></ul>