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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 expectations
Not 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 supplychain 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
communicationsintensive 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 supplier
2. Organizing good communication btw. Sellers &
buyers
3. Ensuring the integration btw. Firms within
supply chain
4. Simplifiying and standardizing the process of
order, loading, transportation, etc..
5. Correctly identifiying the supply chain
relationship
6. 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
realtime 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
1. Management of contracts with suppliers to do
2. Look towards the same strategic objectives with
suppliers.
3. Establishment of proper communication with
suppliers.
4. 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
1. Evaluation of Suppliers
Production capacity.
Profitability ratio.
Location of suppliers.
Production Quantity Performance
Delivery Performance.
Integration of SRM development program.
Quality, Price, Packaging adequacy
2. Evaluation of other suppliers which are
ccandidate for your supply chain.
That’s all, END.
Thanks for your patience...
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