2. • What is the SR ?
• How it works ?
Definition of the supplier
relationship
The unbroken Supply chain
Context
• What are the problems
associated with SR ?
• How does SR empower
compagnies ?
Strenght and Weaknesses of a
SR
Outline
The importance of SR
Why Strategic Supplier Relationships
are Important ?
3. Supplier relationship is everything you do with suppliers
and in your supply market, not related to a specific
contract,
It 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.
4. Supplier relationship is critical to any organization while
suppliers can directly impact the financial performance of
a buying enterprise, as they influence product development
costs, inventory levels, manufacturing schedules and the
timelines of delivery of goods and services.
5. Determining the supply and purchasing strategies.
Working procedures with suppliers.
Selection of suppliers and evaluation criteria
Management of contracts with suppliers to do
Look towards the same strategic objectives with suppliers.
Good communication with suppliers.
Evaluation of other suppliers which are candidate for your supply
chain.
How SR works
6. +
What Is The Problem With Suppliers?
- Unclear expectations
- Not mutually beneficial (Win-Win)
- Multi-supplier environment
- Miscommunication
- Poor governance
- Poor cultural fit
- Lack of coordinated management
7. Elementsofsuccessfulsupplierrelationships
Focus : A common vision for the relationship, with agreed strategies and
activities
Trust : Open communication and disclosure of business drivers
Performance : Continuous improvement towards agreed targets and KPIs
People : Clearly defined roles and responsibilities
Proactive : Anticipating business needs and providing creative
solutions
Profit at Risk: Establishing real metrics to drive behaviour for both parties
8. Thesupplychain
Supply Chain should be one single, unbroken chain from the
supplier’s processes through the customer’s
Buyers must have the same expectations from themselves and
their companies as they have of their suppliers
One weak link can disrupt the entire supply chain
SELL RECEIVE ORDER SCHEDULE/PLAN MANUFACTURE SHIP PAYMENT
9. Why Strategic Supplier Relationships are Important
1. A new supplier commences operations every minute
2. A supplier files bankruptcy every 8 minutes
3. A supplier ceases operations every 3 minutes
4. A judgment is filed against a supplier every 14 seconds
5. A supplier name change happens every 2 minutes
6. A supplier ownership change happens every 4 hours
7. A supplier’s risk profile changes every minute
…world of constant change and challenges (opportunities)
