Process and Governance

Good SRM needs good governance

Our experience, and our surveys of SRM practices in over 500 organisations show that behind every successful Supplier Relationship Management (SRM) programme there’s a clear SRM governance model.

A clear governance model removes doubt and uncertainty. Stakeholders, suppliers and procurement teams need to understand the organisation’s SRM goals and objectives, who’s responsible for what in the SRM programme, and what’s expected of individuals and teams.

We can help you to refine and document – or launch – a governance model. Typical components of an SRM governance model include:

  • Ownership. We’ll identify who owns the SRM process (the systems and processes used to manage supplier relationships), and who owns the relationships with suppliers.
  • Supplier segmentation. We will use a weighted scorecard to analyse your supply base. This analysis will identify the strategically important suppliers that should get the most SRM effort, and suppliers that are preferred, approved or tactical (as shown in the diagram below).
    supplier-governance.jpg
  • Processes, toolkits and templates. We will give you tools that will help you run your SRM programme. The toolkit includes templates that evaluate supplier risks and performance, 360-degree feedback questionnaires, and a process that captures suppliers’ ideas and innovations.