FEATURE PROCUREMENT HEADER
Put simply , “ if your suppliers fail , you fail ,” says Duncan Brock , Group Director at CIPS . Businesses during the pandemic were quick to discover that “ finding alternative sources for goods that failed to show up wasn ’ t easy . If you ’ re sourcing halfway across the world and expect to find sources closer to home , that is not always possible . When your suppliers ’ suppliers failed , you may not even have known until weeks later which made finding a solution more difficult .”
Agreeing with Brock , Martin Wabara , Head of Supplier Sales for GHX Europe comments : “ it is fair to say that 2021 was like no other year ! Many organisations have had to evolve how they operate inside and out . This has led to a change in how people build and cultivate relationships . Many would agree that managing these relationships will now require enhanced use of technology to further understand and respond to customer needs in the new remote and hybrid-remote era of working .”
By adopting an effective supplier relationship management ( SRM ) strategy , organisations can assess and support suppliers in their obligations to fulfil the contract terms . “ By breaking down the processes in the relationship , the procurement team can measure success at each level and criteria to deliver the right outcomes for the business ,” added Brock .
The basic components when it comes to managing your suppliers include a deep dive into their ethical conduct , accountability , governance , how effectively they communicate , their willingness to collaborate and be open and resourceful .
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