srmpresentation-090613032826-phpapp02

7/28/2019 srmpresentation-090613032826-phpapp02

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SUPPLIER

RELATIONSHIP

MANAGEMENT

Prepared by:

UurDemirSaym ([email protected])Fahrettin Kerem Bozbyk ([email protected])

Muhammed Akgn ([email protected])

Instructor : Assoc. Prof. Dr. Gonca Telli Yamamoto


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INTRODUCTION

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.


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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


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WHY SRM?

An effective SRM gives your organization a competitive powerto:

Work with suppliers to reduce direct and indirect costs andimprove 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 ordertransactions are integrated with the supply process to improveproductivity and all areas of supplier performance

Strengthen the supply-chain management process bycollaborating 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 themost critical suppliers


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WHATS 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.


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WHATS 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.


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WHATS SRM?

If I want to easily define SRM and what provides

to our business that;

supports the request for quotation process and other

communications-intensive 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 arecontributing the most value.


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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.


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HOW SRM?

1. Selection and assesment of supplier

2. Organizing good communication btw. Sellers &

buyers

3. Ensuring the integration btw. Firms within supplychain

4. Simplifiying and standardizing the process of

order, loading, transportation, etc..

5. Correctly identifiying the supply chain relationship6. Seetting the information effectiveley wich is to be

shared


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HOW SRM?

7.Setting up the SRM BT(Software) system.

The software system should recognize the opportunity for

real-time data transfer

To minimize the human factor by automating data entry asmuch 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


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SRM OPPORTUNITIES

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.


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SRM OPPORTUNITIES

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.


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SRM OPPORTUNITIES

2. Enable

Supplier self services:Drive supplier participation

and increase responsiveness by enabling suppliers of

all sizes to process orders, generate invoices andupdate specifications.

Content management:Create, synchronize and

maintain content across your internal and externalsupply base to lower the cost and increase

consistency of distributed content.


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SRM OPPORTUNITIES

2. Enable

Operational sourcing:Increase sourcing process efficiencyby using approved vendor lists to select an appropriatesource of supply for unassigned demand.

Self service procurement: Ensure compliance bydecentralizing the process while maintaining central control,allowing purchasing professionals to focus on managingrelationships instead of transactions.

Plan driven procurement: Integrate supply chainmanagement with execution and fulfillment to automatecontract determination and purchase order generation formaterials used in core business processes.

Relationship monitoring: Manage total spend through closemonitoring and benchmarking of supplier relationships andoperational performance.


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SRM STRATEGIES

An active SRM Strategy, make positive impact for

companys activity of production and marketing.

For the success of SRM, well designed strategicroad map should be necessary.

The SRM strategy should follow these rules;


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SRM STRATEGIES

1. Determining the supply and purchasing strategies.

2. Working procedures with suppliers should beplanned.

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 companysbusiness culture.

Capability and adequacy of accomplishment of agreement.

Financial situation of suppliers

Flexibility and technical competence of of supplier.


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SRM STRATEGIES

4. Management of contracts with suppliers to do

5. Look towards the same strategic objectives withsuppliers.

6. Establishment of proper communication with suppliers.

7. Strengthen the supplier: Give respect to your suppliers

continuity of accurate communication with suppliersshould be established

Visit the suppliers and invite their teams to yourcompany.

Presentations should be organized between groupcompanies or supplier, describing successfulapplications.


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SRM STRATEGIES

8. Evaluation of Suppliers

Production capacity.

Profitability ratio.

Location of suppliers. Production Quantity Performance

Delivery Performance.

Integration of SRM development program.

Quality, Price, Packaging adequacy

9. Evaluation of other suppliers which are ccandidate

for your supply chain.


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Thats all, END.

Thanks for your patience...

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