Supplier Relationship Management: Collaboration for Win-Win Competitive Advantage

APQC - February 2007

Abstract: Best-practice organizations share their secrets for rationalizing their supply bases to include only the strongest, best-performing, and most collaborative upstream partners and leveraging those partnerships to reduce cost, improve quality, and increase customer satisfaction in Supplier Relationship Management: Collaboration for Win-Win Competitive Advantage.

Key Findings

Supplier Relationship Methodology

  • Partnering with suppliers and integrating supplier relationship methodology into strategic sourcing initiatives improves supply chain effectiveness and customer service.
  • Effective SRM aligns with corporate goals through cross-functional strategic initiatives involving cross-functional teams in supplier relationships.
  • A supplier relationship initiative must be recognized and supported by the entire organization.

Collaboration and Synchronization of the Supply Chain
  • Strategic relationships require time, trust, mutual understanding, regular and consistent communications, and mutual commitment to establish a long-term relationship.
  • Building an effective supplier relationship framework involves identifying and categorizing spend characteristics and then implementing initiatives across a rationalized supplier base.
  • Working with suppliers to develop mutual capability and integrated strengths serves to continuously improve supply chain effectiveness and, ultimately, customer service.

Technology and Processes as Enablers
  • Strategic supplier relationship initiatives require standardized processes, an organizational structure that supports the processes, and accountability for key objectives.
  • Joint identification and implementation of tools/technology with supply chain partners lays the foundation for a collaborative environment.

Measurement, Results, and Continuous Improvement
  • Effective metrics are those developed and set in collaboration with suppliers and stakeholders.
  • Enforcing SRM internally through measurement and rewards ensures program success and drives results.
  • Keywords: Supply chain management - Supplier partnerships

    Access this article
    Other ways to access this article
    You will need Adobe Reader to view this PDF document. Download the free Reader from Adobe

    Featured advertisers


    (0) Member Reviews

    Featured advertisers

    ASQ is a global community of people passionate about quality, who use the tools, their ideas and expertise to make our world work better. ASQ: The Global Voice of Quality.