SRM is the practice of determining, developing and maintaining optimal and appropriate business relationships with each supplier, starts with supply base segmentation and ends with determining the appropriate relationship and a model to derive attractive ROI for both parties
Partnerships, Approved Suppliers, Preferred Suppliers, Certified Suppliers,… we all share the same vision, we must turn to other alternatives to increase profitability and productivity without sacrificing quality, delivery time and service
With a strong SRM Program, we can work together to leverage our assets, capabilities, and knowledge as a source of competitive advantage
The goal is to engage on improvement projects to achieve Sustainability and Diversity objectives, these along with key performance indicators (KPIs) will allow us to create a Score Card to recognize the efforts
Evaluation Criteria
According to the Procurement Strategy Council and institutions like the ISM, its a best practice to classify business relationships by contribution, risk and spend
We at SAC have defined specific criteria and sub-criteria levels to both: hard data and subjective data and assign them different weights to accommodate the different businesses and supplier categories, it will never be the same to evaluate a supplier on raw materials than a service supplier
We value supplier feedback in order to augment collaboration
Sustainability becomes part of our standard SRM model
