Predictive supplier relationship management

Supplier relationship management - Wikipedia

predictive supplier relationship management

Successful transmission of quality requirements through a supply chain is impossible without effective supplier relationship management. Regardless of demand forecasting, supply flaws (overstocking or under for Supplier Selection and Supplier Relationship Management (SRM). Supplier management strategy requires alignment with the core components of data analytics from understanding the present ('descriptive') to predicting future To succeed in Supplier Relationship Management (SRM).

Supplier relationship management

Will these new digital technologies invest in purchasing? What results will such a transformation cause?

predictive supplier relationship management

From Homes to Business: Consumers tend to initially adopt the uses of new technologies in the personal sphere before transposing them into professional applications. This phenomenon is observed especially with social networks: Skype, initially designed for private use, is now a standard in all companies.

Using Analytics to make the most of Your Supply Chain Data

Facebook or Twitter have inspired applications for businesses, such as Yammer, a microblogging solution for businesses. Thus, as we described in a previous forum on purchasing, supplier evaluation systems, integrated into the platforms of digital purchasing solutions, are moving towards more simplicity, in the manner of sites such as TripAdvisor.

predictive supplier relationship management

As far as AI is concerned, it is now entering consumers' daily lives with applications such as Siri AppleAmazon Echo or Google Home in the form of digital personal assistants.

Many startups use this technology, whose applications seem endless, driven by the wave of the UX or "user experience.

predictive supplier relationship management

The transition from the personal world to the professional world is underway. This role can be a full-time, dedicated positions, although relationship management responsibilities may be part of broader roles depending on the complexity and importance of the supplier relationship see Supplier Segmentation.

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An executive sponsor and, for complex, strategic supplier relationships, a cross-functional steering committee. Effective governance should comprise not only designation of senior executive sponsors at both customer and supplier and dedicated relationship managers, but also a face-off model connecting personnel in engineering, procurement, operations, quality and logistics with their supplier counterparts; a regular cadence of operational and strategic planning and review meetings; and well-defined escalation procedures to ensure speedy resolution of problems or conflicts at the appropriate organizational level.

Further, suppliers can be segmented by the degree of risk to which the realization of that value is subject.

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Executive-to-executive meetings Strategic business planning meetings, where relationship leaders and technical experts meet to discuss joint opportunities, potential roadblocks to collaboration, activities and resources required, and share strategies and relevant market trends. Joint business planning meetings are often accompanied by a clear process to capture supplier ideas and innovations, direct them to relevant stakeholders, and ensure that they are evaluated for commercial suitability, and developed and implemented if they are deemed commercially viable.

Operational business reviews, where individuals responsible for day-to-day management of the relationship review progress on joint initiatives, operational performance, and risks.

predictive supplier relationship management

One tool for monitoring performance and identifying areas for improvement is the joint, two-way performance scorecard. A balanced scorecard includes a mixture of quantitative and qualitative measures, including how key participants perceive the quality of the relationship.

These KPIs are shared between customer and supplier and reviewed jointly, reflecting the fact that the relationship is two-way and collaborative, and that strong performance on both sides is required for it to be successful.

predictive supplier relationship management

Advanced organizations conduct degree scorecards, where strategic suppliers are also surveyed for feedback on their performance, the results of which are built into the scorecard. A practice of leading organizations is to track specific SRM savings generated at an individual supplier level, and also at an aggregated SRM program level, through existing procurement benefit measurement systems.