What exactly are “SRM”?

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  • April 10, 2017
Facilitating the exchange between manufacturers and suppliers.

The concept of SRM or “Supplier Relationship Management” is being increasingly evoked within companies. In today’s day and age, suppliers have an increasingly vital role in the development of new products and for the smooth functioning of companies.

New and optimised management methods, as well as the information systems that connect all players in the chain in the development of new products gradually transform the supplier into a full partner of the company. They are necessary for the company to function and therefore control somewhat the company decisions just like any other partner.

Which brings us to why it is important to know how to manage them.

The objective of the SRM is to enable companies to improve communication with their various suppliers, to set up and share methods as well as business terms and information with them. Thus, companies will have better knowledge of each supplier in order to optimise the procurement process.

These good practices will enable suppliers to better understand the needs of businesses and thus respond appropriately. A real win-win situation for everybody.

Sharing with suppliers: Capital and know how

Collaboration with vendors is critical to maintaining market leadership. And this goes well beyond a simple exchange of documents between the company and its suppliers. There is no longer a single repository of know-how and they must take into account the knowledge that suppliers possess. The benefit of increased communication with suppliers lies in the additional information they are able to provide.

By leveraging a PLM solution such as Lascom, supplier relationship management is facilitated and mastered. The Lascom solution enables manufacturers and distributors to have a collaborative space to efficiently manage the sending and processing of tenders, initiate an exchange with several suppliers based on specifications or to develop the specifications for each new product or raw material. The information entry is directly transferred to the source. Information and specifications are better controlled, verified and plotted.

For more on this subject or on how Lascom’s PLM solution can help with Supplier Management Relationships, click here.

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