Supplier Relationship Management

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
  • Fostering Collaboration

Methodology

  • 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

    Illustrative Example
  • 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.

LET’S TALK

Please reach out to us if you’re interested to know how Valorant can help your organization save more while reducing risk.

CONTACT US