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 stands for: 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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The Massive Problem at the Heart of SRM
Senior Business Consultant at POOL4TOOL & Procurement Blogger We all know what SRM stands for: Supplier Relationship Management. But do Procurement practitioners know what it really means? Definition is where we run into our first issues, so let’s look at common meanings: Wikipedia: SRM is “the discipline of strategically planning for, and managing, all interactions …
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Bertrand Maltaverne
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  1. 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:

    • For a relationship to survive, both parties must come to believe that the other will do what they say they will do.  That is the source of all trust.
    • For a relationship to advance, both parties must find a way to be comfortable with the risk of being open and vulnerable to the other, in the secure belief that the other party will not take unfair advantage of that vulnerability.
    • Your ability to influence the other party in a relationship is shaped by their perception of your willingness to help them meet their needs in that relationship.  I believe that there is nothing more profound about persuasion which can be said.

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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 stands for: 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

    Media Center remove preview
    The Massive Problem at the Heart of SRM
    Senior Business Consultant at POOL4TOOL & Procurement Blogger We all know what SRM stands for: Supplier Relationship Management. But do Procurement practitioners know what it really means? Definition is where we run into our first issues, so let’s look at common meanings: Wikipedia: SRM is “the discipline of strategically planning for, and managing, all interactions …
    View this on Media Center >

    ——————————
    Bertrand Maltaverne
    ——————————

    0
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