What is Supplier Relationship Management And How to Enhance it
When it comes to running a successful business, there are two main relationships that you should consider. The first is between you and your customer, the second between you and your suppliers. Both are important and both deserve nurturing.
In this post, we will take you through what supplier relationship management is (SRM) and the key benefits it can bring to business growth.
What is supplier relationship management?
In simple terms, SRM refers to the relationship between a buyer and supplier. It aims to encourage communication that identifies and measures the performance of products as well as suppliers.
SRM aims to streamline such relationships. Your main goal should be to develop a rapport that is beneficial to both organisation and its suppliers. A successful SRM seeks to ensure an understanding of what the business needs and what the suppliers can offer.
Establishing consistency between the two prevents popular stock selling out and product discontinuation. With effective coordination, companies can take a strategic approach to their products and services.
Taking a page out of the account based marketing ebook, long-lasting relationships encourage new opportunities. Successful business enterprises succeed on trust and cooperation.
How to enhance supplier relationship management
There is an economic benefit to both a business and its suppliers developing trusting relationships. No business can operate successfully without embracing the benefits of SRP. Let’s take a look at some top tips to optimise supplier relationships.
Communication is everything
Communication is key when building an effective partnership with suppliers. Keeping suppliers updated on your strategy will allow them time to prepare and time to support you moving forward.
Through openness with your plans, trust is built upon. Trust in your supply chain is an essential step in launching a successful ecommerce business.
Invest in technology
As consumer testing or sales call planning furthers company growth, investing in SRM software will too. Being able to track your supply chains as well as communicating intelligence keeps both parties updated and on the same page.
Get it in writing
Having a contract in place between buyer and supplier increases trust within the relationship. With agreed terms, all parties are invested in the success of the product, and all will strive to achieve this success.
Like with anything, having a strong relationship increases trust and success. Ensuring mutual respect will have a positive effect on your business and your relationships going forward.
Jessica Day – Senior Director, Marketing Strategy, Dialpad
Jessica Day is the Senior Director for Marketing Strategy at Dialpad, a modern business hosted IP PBX communications platform that takes every kind of conversation to the next level—turning conversations into opportunities. Jessica is an expert in collaborating with multifunctional teams to execute and optimize marketing efforts, for both company and client campaigns. Here is her LinkedIn. She has also written content for Pretty Links and Kanbanize.