SUPPLİER RELATİONSHİP MANAGEMENT

Prepared by:

Uğur Demir Sayım (uhdesa@gmail.com)

Fahrettin Kerem Bozbıyık (fkb_85@yahoo.com)

Muhammed Akgün (muhammedakgun@gmail.com)

Instructor : Assoc. Prof. Dr. Gonca Telli Yamamoto

INTRODUCTİON

SRM 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.

SRM is critical to any organization while ssuppliers can directly impact the financial performance and profitability of a buying enterprise, as they influence product development costs, inventory levels, manufacturing schedules and the timeliness of delivery of goods and services.

WHY SRM?

What Is The Problem With Suppliers?

Unclear expectationsNot mutually beneficial(Win-Win)Buyers multi-supplier environment Miscommunication Poor governance Poor cultural fit Lack of coordinated management

WHY SRM? An effective SRM gives your organization a competitive

power to: Work with suppliers to reduce direct and indirect costs and

improve service. Product/service agreements are developed and managed

with key suppliers Goal is to improve the profitability of both the focus

company and the suppliers. Understand what purchase and from whom: Purchase order

transactions are integrated with the supply process to improve productivity and all areas of supplier performance

Strengthen the supply-chain management process by collaborating with your company and suppliers

Select the best suppliers to gain advantage over competitors

Minimize the risk of supply chain Assure that your organization's resources are prioritized on

the most critical suppliers

WHAT’S SRM?

In many industries today, the trading partners that supply your operations dictate over 60 percent of the cost of goods you sell. Thirty years ago, this figure was half as much.

So it is more important than ever to evaluate these expenses and related costs, increase the efficiency of your supply processes and enforce compliance with corporate purchasing strategies.

WHAT’S SRM?

Obviously, Supplier Relationship Management refers to provides visibility across the entire supply base to help you increase the value of your business relationship.

Purchasing patterns can be analyzed and anticipated, sourcing cycles can be compressed and collaboration can take place in real time.

The result is lasting relationships with suppliers that have proven their ability to deliver value.

WHAT’S SRM?

If I want to easily define SRM and what provides to our business that;

supports the request for quotation process and other communications-intensive business necessities,

It provides a medium for collaboration and helps you analyze the entire spectrum of purchasing operations,

It allows you for the first time to truly examine your procurement practices and find out which suppliers are contributing the most value.

HOW SRM? Procurement;

is the process of supplying/obtainin materials and products from outsdie supply source

Supplier; can be people companies, institutions and organizations that

are submittingg goods or services which are going to be purchased.

Required activities of the Supply Process Which are quality of goods, security, storage and

placement, inside and outside company transportation, locating supply sources…

Responsibilities of the Procurement function Determining the limits of supply source, getting them

together, and continionus. Making research for new supply sources. Providing coordination with supply sources.

HOW SRM?

1. Selection and assesment of supplier2. Organizing good communication btw. Sellers

& buyers3. Ensuring the integration btw. Firms within

supply chain4. Simplifiying and standardizing the process

of order, loading, transportation, etc..5. Correctly identifiying the supply chain

relationship6. Seetting the information effectiveley wich is

to be shared

HOW SRM?

7. Setting up the SRM BT(Software) system.

The software system should recognize the opportunity for real-time data transfer

To minimize the human factor by automating data entry as much as possible.

Software system should be active all time. The software for supply cahin managemenet should

be easiliy integrated to other software project in the company.

All data from different sources migth be processed correctly.

8. Social activities within the supply chain companies

SRM OPPORTUNİTİES

I want to explain the SRM opportunities in a three descriptive words in expansion manner below given such as;

1. Evaluate Supply strategy development: Improve

visibility across multiple lines of business to identify and rationalize duplicate contracts and facilitate informed negotiation with vendors.

Supplier qualification: Reduce risk of supply and shrink buffer inventory with reliable and expedited processes for supplier discovery and qualification.

SRM OPPORTUNİTİES

Supplier selection:Compress sourcing cycle times with a variety of auction and bidding techniques that match supplier capabilities with sourcing requirements.

Contract negotiation and management: Collaborate among project teams to edit documents, conduct meetings and negotiate business deals while ensuring total security.

SRM OPPORTUNİTİES

2. Enable

Supplier self services: Drive supplier participation and increase responsiveness by enabling suppliers of all sizes to process orders, generate invoices and update specifications.

Content management: Create, synchronize and maintain content across your internal and external supply base to lower the cost and increase consistency of distributed content.

SRM OPPORTUNİTİES

2. Enable

Operational sourcing: Increase sourcing process efficiency by using approved vendor lists to select an appropriate source of supply for unassigned demand.

Self service procurement: Ensure compliance by decentralizing the process while maintaining central control, allowing purchasing professionals to focus on managing relationships instead of transactions.

Plan driven procurement: Integrate supply chain management with execution and fulfillment to automate contract determination and purchase order generation for materials used in core business processes.

Relationship monitoring: Manage total spend through close monitoring and benchmarking of supplier relationships and operational performance.

SRM STRATEGIES

An active SRM Strategy, make positive impact for company’s activity of production and marketing.

For the success of SRM, well designed strategic road map should be necessary.

The SRM strategy should follow these rules;

SRM STRATEGIES

1. Determining the supply and purchasing strategies.

2. Working procedures with suppliers should be planned.

3. Selection of suppliers and evaluation criteria Evaluation of Certificate, business knowledge and

experience in the sector Evaluation of Price level Product & service quality evaluation Suppliers working styles and attitudes and also

company’s business culture. Capability and adequacy of accomplishment of

agreement. Financial situation of suppliers Flexibility and technical competence of of supplier.

SRM STRATEGIES

4. Management of contracts with suppliers to do5. Look towards the same strategic objectives with

suppliers.6. Establishment of proper communication with

suppliers.7. Strengthen the supplier:

Give respect to your suppliers continuity of accurate communication with

suppliers should be established Visit the suppliers and invite their teams to

your company. Presentations should be organized between

group companies or supplier, describing successful applications.

SRM STRATEGIES

8. Evaluation of SuppliersProduction capacity.Profitability ratio.Location of suppliers.Production Quantity PerformanceDelivery Performance. Integration of SRM development program.Quality, Price, Packaging adequacy

9. Evaluation of other suppliers which are ccandidate for your supply chain.

That’s all, END.

Thanks for your patience...

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