Supplier Relationship Management

Supplier Relationship Management (SRM) is the systematic approach assessing suppliers influence on your business and managing their performance in alignment to your own business goals and requirements.

SRM works by analysing all suppliers to your business, segmenting and categorising them to gain an in-depth understanding of the impact each supplier has on your business. Outlining which suppliers are operating well and which suppliers are potential risk hazards.

Taking the insight developed from the analysis, a bespoke strategy can then be developed to begin to better leverage the relationships with your suppliers in more effective ways. Streamlining approaches and processes between you and your suppliers developing mutually beneficial relationships which strengthen your business’s core functions.

As with any relationship, there is a development process, although some benefits are quickly realised, long-term development and strategy planning will ensure ongoing, consistent and measurable benefits not only to cost but to all aspects of your operational model are achieved.

Once initiated, Supplier Relationship Management becomes a staple ideal of your procurement function requiring a step change in understanding and approach to supplier interactions.

Beginning on the path to better Supplier Relationship Management can seem a daunting prospect which may appear unrealistic. Businesses who have adopted SRM models will attribute to the strong benefits achievable once the initial learning curve has been completed.

SCB Procurement Solutions are able to assist you in the process and can help to level out the learning curve which may seem insurmountable.

We provide a fully bespoke service from the initial analysis outlining to potential benefits available, through to strategy development, supplier auditing, SRM health checks and staff training to ensure you are well positioned to better meet the needs of your customers.


Spend/Supplier Analysis

Spend analysis is a fundamental part of any supplier or cost reduction strategy or activity, providing focused insight into the purchasing profile of your business. Strategy based upon strong spend analysis will target key areas allowing for the greatest results with limited risk of exposure.

Supplier Selection

Developing a robust set of selection criteria to pre-qualify potential suppliers for a specific sourcing activity or for ongoing supplier development.

Supplier Rationalisation

Reducing the number of current suppliers to a manageable level through different techniques including product/service consolidation, competitive tendering and product/service re-engineering. This enables the remaining suppliers to be leveraged more effectively for better service, cost reductions etc.


Approved Vendor List Development

The development of an AVL, which ensures suppliers to the business have all required attributes to provide the best service. Allowing for resource to be invested effectively to assist in further targeted supplier development.

Supplier Risk Management

Understanding potential risks posed by working with specific suppliers i.e. niche suppliers, financial risk, possible bottlenecks in the supply chain. Defining and implementing risk management strategies to either mitigate or manage accordingly.

Supplier Development

Working closely with strategic suppliers to improve processes with both companies, develop closer working relationships, and exploit available opportunities to maximise benefits from the relationship.



Large organisations invest heavily in Supplier Relationship Management as they understand the benefits of developing a robust and effective supply chain not only reduces cost but provides opportunities for growth and development throughout the organisation.

The main benefit for developing a robust SRM strategy is to reduce cost, by rationalising your supply base and working with the most effective suppliers increases your purchasing power and helps to boost your profile as a customer of choice.

Wider benefits to available to SMEs for utilising a similar approach are considerable. Working closely with well suited suppliers not only helps to reduce your supply costs but can also increase the flexibility of your business to react to changing customer requirement.

Developing close relationships with your key suppliers can also help you to capitalise of opportunities which otherwise may not be available, including utilising new technologies, sharing market insight and best practice, sharing innovation opportunities etc.


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Finding the Perfect Supplier

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Supplier Management Process Transformation - Public Procurement

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