Supplier relationship management

Supplier relationship management (SRM) involves establishing and maintaining mutually beneficial relationships with suppliers to optimize value creation and mitigate risks. It encompasses activities such as supplier selection, performance evaluation, collaboration, and continuous improvement to ensure a strong and productive partnership.

Beginner competence definition

Beginners have a basic knowledge of supplier evaluation criteria and performance metrics and can assist in supplier onboarding processes by collecting and organizing supplier information, conducting basic supplier assessments, and supporting the development of supplier scorecards. They may require guidance from more experienced professionals in managing and enhancing supplier relationships.

Intermediate competence definition

An intermediate-level professional is able to conduct comprehensive supplier evaluations, including assessing supplier capabilities, financial stability, and risk profiles. They actively engage with suppliers to develop collaborative relationships, resolve operational issues, and drive performance improvements. They are also able to utilize supplier performance metrics and can contribute to supplier development initiatives. Additionally, they possess strong communication and negotiation skills to manage conflicts and negotiate win-win agreements.

Advanced competence definition

An advanced-level professional has extensive knowledge of supplier relationship strategies, stakeholder management, and performance measurement methodologies, and is able to develop and execute SRM strategies aligned with the organization’s objectives. They proactively identify opportunities for innovation, cost savings, and value creation through supplier collaboration. They also excel at managing strategic supplier relationships, negotiating complex contracts, and mitigating supplier-related risks. We have found they drive continuous improvement in supplier performance, facilitate strategic partnerships, and act as a trusted advisor to internal stakeholders on supplier-related matters.