How to Establish an SRM Program That Really Works

supply chain talent gap

How can procurement discourage dysfunctional corporate behavior and seize the opportunity to shift its supplier relationship management (SRM) focus from tactical savings to real cost reduction and obtaining maximum value from the goods and services acquired?

This question forms the core of a new series by Spend Matters UK/Europe on SRM , which has emerged in recent years as both a topical issue and a genuine priority for CPOs. Peter Smith, our U.K. affiliate’s chief research officer and managing director, examines five videos by David Atkinson, a former CPO and now founder of Four Pillars Consulting, that articulate the major obstacles procurement organizations face today and how to overcome them.

“His recommendation to CPOs is to ensure their SRM programs have real purpose, one meaningful to senior management, key stakeholders, peer groups and those practitioners charged with leading the day-to-day effort,” Peter wrote. “A compelling vision and strapline that makes it clear why you’re doing it will come in handy when support wavers and stakeholders complain that progress is not as smooth or as rapid as they expected.”

Atkinson is an expert on SRM, and throughout his video series he emphasizes the importance of defining the value of the practice to stakeholders, as well as coaching them to become part of the effort themselves. True SRM is about value for money, he explains, and how it created, realized and fairly distributed between participants in the supply chain.

These lessons cover essential strategies for procurement organizations that have both internally and externally facing uses. For more SRM wisdom, head over to Spend Matters UK/Europe for learn about meeting the needs of stakeholders; defining value for money; establishing the core activities of your SRM program; and developing SRM skills across the whole organization.

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