Supplier Relationship
Management (SRM)

Supplier Relationship Management requires a selective approach. Good Supplier Relationship
Management will help us unlock the hidden value in your supply base. We cannot have a relationship
with every supplier; for many suppliers we simply need them to provide what we want, on time, in full,
to agreed budget or price. For others some form of intervention may be necessary to keep things on
track and yet, for perhaps a small number of other suppliers, it is possible to secure much greater
value; value that can, in some cases, make a dramatic and game changing contribution to our
business. Our supplier base therefore harbours huge potential; ranging from the potential to prevent
damage to our business through to the potential to add great value to our bottom line and help us
grow. The role of suppliers in our supply base getting more important due to the very tight competition
to reduce cost.


Therefore, to perform a better Supplier Relationship Management, it requires methodologies and tools in:

  • Supplier relationship management: how do we decide to put intervention with our suppliers

  • Selecting the way to approach supplier in term of: SPM (supplier performance management), SI&D (supplier improvement & development), SCM (supply chain management) and SCR (strategic collaborative relationship)

  • Taking advantage of the SRM benefits in improving our supply process, reducing cost in transaction and monitoring the suppliers

Training Outline

  • 5 reasons why we need to approach our mandatory supplier, introducing the concept of VIPER (Value, Innovation, Performance, Effectiveness & Risk)

  • 3 pillars of SRM: VIPER, supplier segmentation & supplier intervention in term of SPM, SI&D, SCM, SM & SCR

  • Generic segmentation based on risks, difficulty level, alignment, current importance & future importance

  • Relation between segmentation and type of intervention to suppliers

  • Exercise for supplier segmentation

  • SPM (supplier performance management): 5 steps to build SPM, develop KPI (lagging & leading indicator), scorecard & dashboard

  • Supplier management: why we need to manage our supplier?, manage the risk from supplier, risk assessment, supplier review

  • Strategic collaborative relationship: develop collaboration with supplier, opportunity of collaboration with supplier, portfolio analysis to see whether our supplier willing to collaborate, 5A in collaboration with supplier (activate, analyse, ambition, accomplish and advance)

  • Supplier improvement & development: STPDR (study, target, plan, do, review), steps in developing suppliers

Training Methodologies
Interactive discussions, presentations, concept introduction, examples and exercises

Course length: 2 days

Language: English

For further information and registration, please email us at media@cel-consulting.com

©2019 by CEL Consulting.