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Vendor Performance & Supplier Management

Supplier Management is the organization, controlling, and development of supplier and its relationships.

Goals of Supplier Management are:

  • Management of suppliers, based on the total cost of the relationship
  • Procurement volume concentration on the best suppliers
  • Supply Chain-Procurement costs decrease
  • Supplier performance increase
  • Improvement of co-operation
  • Optimization of the entire value chain in collaboration with suppliers

 Supplier Management 2

Supplier Management 1

Supplier RelationshiP Management is a comprehensive approach to managing a Company’s interactions with the goods and services providers.

The goal of SRM is to streamline and make more effective the processes between Company and its suppliers.

SRM is a methodology to structure and support relationships with suppliers that will assist in:

  • Reducing procurement and excess inventory costs
  • Supporting a customer-focused business that delivers product/service customization and quality in the desired time frame
  • Continuously improving supply processes

Processes enabled by SRM:

  • Lean and just-in-time
  • 3PL partnerships
  • Supplier managed inventory
  • Collaborative transportation management
  • Etc.

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