Summary
Highlights
Kim introduces herself as a supply chain officer for a Housing Association in the public sector, managing procurement for property services, fleet, contractors, and PPE. Her role involves onboarding and managing suppliers, and implementing new processes.
Kim emphasizes the critical importance of SRM, especially during the pandemic. She provides an example where a key PPE supplier struggled to meet demand. Effective SRM allowed her to understand the supplier's difficulties and work collaboratively to find solutions, ensuring essential PPE supply for emergency repairs.
To address the PPE shortage, Kim's team strategically brought on smaller, local suppliers to spread the load and secure stock. This not only alleviated pressure on larger suppliers but also benefited local businesses. Regular communication with these suppliers ensured a steady flow of PPE and allowed for proactive ordering and management of supplies.
Kim explains that strong supplier relationships lead to prioritization of needs, better communication, and mutual understanding of difficulties. This openness results in suppliers trying their best to meet demands and proactively communicating issues, allowing the organization to seek alternative solutions. This led to a good stock level of PPE for her organization.
A strong relationship builds trust, where suppliers openly communicate potential issues, allowing the organization to address them proactively rather than facing unexpected delivery failures. This personalized service, especially from smaller, local businesses, helps anticipate risks and make strategic decisions.
Effective SRM leads to measurable results such as reduced lead times, improved cycle times, and potential cost savings. Suppliers who understand the organization's needs can offer suitable alternative items and help monitor critical stock. This proactive information sharing enables the organization to manage internal stock more effectively.
Kim clarifies that not all suppliers are managed the same way. Strategic suppliers, offering essential products or critical services, require close monitoring, constant contact, and prompt resolution of disputes. Non-strategic suppliers, like stationery providers, or reliable long-term contractors, require less intensive management. The focus should be on suppliers vital to business operations.
Kim concludes that effective supplier relationship management is an integral skill for procurement professionals. It requires continuous development and effort, especially with evolving technology. Maintaining strong communication is essential for business continuity and is a valuable skill that yields significant benefits.