Disclosure: I’m the author of the article linked at the end of this message
We all know what SRM stands
But do Procurement practitioners know what it really means?
The way many procurement organizations work with suppliers could actually be called “supplier management” — not supplier relationship management. Supplier management is characterized by its focus on convenience — it is a zero-sum game.
Procurement = SRM²
Plus, the SRM acronym hides a secret meaning… Stakeholder Relationship Management.
This symmetry of SRM illustrates the purpose of the Procurement function: connecting the inside and the outside, answering needs and business challenges of both sides. Procurement should be a facilitator, a moderator, and a connector.
For more, read the full article:
The Massive Problem at the Heart of SRM
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Bertrand Maltaverne
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Spot on – we have employee satisfaction and customer service. Yet when it’s suppliers – parent / child or master / slave language of MANAGEMENT is used.
May want to depict the value continuum of SRM (other names could be: MSR managed supplier relations or better yet either OSR – orchestrated or ESR – engaged supplier relations) from simple communication (tell someone what you want) to sharing (provide information to help the other party plan and perform) to cooperate (work together to reduce waste) to collaborate (earn preferential treatment from stakeholders in ways that confer competitive advantage). Language matters – for example, we use chain and network often without distinction. These aren’t the same in my mind. Chains don’t exist as single linear links from mother earth to end consumer. Suggest replacing the word chain with network everywhere. We’ve outgrown the concept of managing suppliers sust as we’ve outgrown the concept of a chain and need a new constructs.
Essentially, SRM is a TLA for Trust. More on trust. My perspective is trust is the glue that enables the enablers. Some Hallmarks of Trust to highlight might include the following:
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Joe Sandor
Professor
Michigan State University
Lecanto FL
(517) 488-8931
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Original Message:
Sent: 12-15-2016 06:39
From: Bertrand Maltaverne
Subject: The Massive Problem at the Heart of SRM
Disclosure: I’m the author of the article linked at the end of this message
We all know what SRM standsfor: Supplier Relationship Management.
But do Procurement practitioners know what it really means?
The way many procurement organizations work with suppliers could actually be called “supplier management” — not supplier relationship management. Supplier management is characterized by its focus on convenience — it is a zero-sum game.
Procurement = SRM²
Plus, the SRM acronym hides a secret meaning… Stakeholder Relationship Management.
This symmetry of SRM illustrates the purpose of the Procurement function: connecting the inside and the outside, answering needs and business challenges of both sides. Procurement should be a facilitator, a moderator, and a connector.
For more, read the full article:
The Massive Problem at the Heart of SRM
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Bertrand Maltaverne
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