Five Key Benefits of Effective SRM
PROCUREMENT
Five Key Benefits of Effective SRM
Duncan Brock , Group Director , CIPS says effective SRM provides :
• Cost efficiencies : By working closely together , cost forecasts are more accurate and there can be honest decisions around how to improve on efficiencies in production and procurement processes – on both sides .
• Technological advances : Suppliers and buyers can advise each other on the latest developments in their sector . A sharing of ideas can result in new markets both businesses can benefit from .
• Customer of choice : As the pandemic has shown us , sometimes the customers of choice ie . those with a close mutuallybeneficial working relationship , managed to receive their supplies where other customers further down the list did not .
• Reduce risk : By understanding your suppliers and all the tiers down the supply chain , there are fewer risks of fraud or modern slavery sometimes hidden in the depths of multiple supplier layers .
• Sustainability : Any ethical initiatives such as sustainability programmes can be shared with suppliers and they can be encouraged to develop their own actions . The good management of supply chains can contribute a great deal in reducing waste and carbon emissions so offering support to suppliers is a value buyers can bring to the debate .
52 November 2021