4.4 Supplier Management

Developing tools and processes to capture and communicate supplier performance data in order to identify where improvement is required and help drive that improvement.

SRM is a mutually beneficial two-way process in that it should improve the performance of both the buying and the supplying organisations. It involves proactively developing relationships with particular suppliers. This module should explore how to deal with suppliers in all areas of spend, focusing around relationships themselves, their complexities, and how to repair or manage a dysfunctional relationship. The term supplier relationship management should be reserved for the more complex relationship development associated with period contracts, rather than the more straightforward performance management of individual orders.

Develop a process to ensure that any risks (and opportunities) associated with the Supply Chain and with suppliers can be identified and mitigated (benefit realised).

To develop the beneficiaryﾒs capability to work with select suppliers on a one-to-one basis to improve their performance and capabilities for the benefit of the Supplier and the buying organisation. Awareness of different levels of supplier development that can take the form of one-off projects or on-going activities that may take some years to come to fruition.