Supplier relationship management (SRM) is the systematic approach of assessing suppliers'
contributions to success and identifying an overall strategy to maximize suppliers' performance.
Supplier Relationship Management (SRM) provides the following benefits for an organization
Driving Contract Compliance
Aligning Suppliers with Business Goals
Managing Risk within the Supplier Base
Segment suppliers based on uniqueness and spend: By plotting suppliers on
matrix of spend versus uniqueness, Valorant helps organizations distinguish suppliers
that are strategic, as opposed to ones that are bottleneck, routine or leveraged.
IDENTIFICATION OF COST-REDUCTION STRATEGY BASED ON SUPPLIER SEGMENTATION
Develop scoring mechanisms to evaluate supplier performance: After
strategic suppliers are identified, Valorant enables accurate evaluation of performance
through a proprietary scoring mechanism. We typically leverage a scale of 1 - 5, ranging
from Marginal to Best-In-Class, but can be customized based on client’s needs.
Align with suppliers on improvement and action plans: Through the process,
we gather detailed observations regarding areas of improvement for each supplier, and
leverages industry expertise to translate them to specific, measurable action items,
SLAs and KPIs.
Reward suppliers for business benefits: Working with various clients and
their suppliers, we have found some of the effective ways of rewarding suppliers include
channeling additional spend to high performers, assisting in the development of new
capabilities/service lines, providing testimonials, and issuing performance bonuses.
Interested in learning more about how Valorant can help your organization strategically reduce your 3rd party spend, as well as manage vendor-related risk? Reach out to us now