Gartner Research

Supply Management Essentials: Reduce Costs and Drive Value Through Foundational Supplier Relationship Management

Published: 21 November 2014

ID: G00261597

Analyst(s): Ray Barger Jr, Richard Adams

Summary

As manufacturing companies seek more savings and value, CPOs and supply management leaders are realizing that strong, trust-based supplier relationships are essential to supply chain success. This research focuses on establishing foundational supplier relationship management best practices.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Update Supplier Segmentation to Define Supply Groups Based on Spend or Impact to Revenue, and on Criticality/Risk or Difficulty in Alternate Sourcing
  • Establish SRM Types Based on Supplier Segmentation and Supply Chain Strategy and Objectives
  • Define Foundational SRM Dimensions by Type, and Communicate the Attributes to the Supply Management Team, Other Supply Chain Functional Groups, LOB Leaders and Key Suppliers
  • Ensure Key Functional and LOB Executives Are Engaged With Key Supplier Executives to Drive the Most Savings and Value From Foundational Supplier Relationships

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