Companies foster customer loyalty but they should also build good relationship with suppliers. The fact is that suppliers have a crucial role and it is necessary to keep them happy. Nurturing good relationship with them can leverage your success.
Modern manufacturers partner with an extensive range of suppliers. Moreover, this supply chain is growing very complicated. In this competitive market, the manufacturers need to reduce prices for attracting customers.
Therefore, there is a necessity to squeeze profit margins. With an aim to encourage efficiency and maintain profitability, companies can take help form a systematic supplier relation management system.
What is SRM Software?
Supplier Relation Management (SRM) is similar to Customer Relation Management (CRM) in certain respects. CRM takes care of the sell-side, while SRM covers buy-side of an organization.
For business, SRM is linked with managing the key relations, performance, and associated business processes between the organizations staff, strategic suppliers, and commodity suppliers. When supplier management is executed efficiently, all the parties can benefit.
Benefits of SRM Software
- SRM delivers value
It allows managing key supplier information irrespective of from where it originated.
Features Include –
Automatically determines proper approval path on the basis of individuality like supplier type, commodity, and your organization’s request to the potential supplier. It even determines what information and qualifications are needed on the basis of suppliers input fields.
Supplier’s Hierarchy and Categorization
You can see beyond what you are spending with a particular supplier. Data can be divided in accordance to each supplier’s allotment and position. This allows you to increase saving potential easily by managing the intricate supplier hierarchy rapport, accurately.
360° Analysis of Main Suppliers
All the data is available at a single place, which allows you to gain visibility into the past and current activities of a specific supplier. Suppliers with expired credentials get flagged, before you request them for sourcing specific commodities.
- Registration and data management
You can get connected with suppliers easily and quickly.
Features include –
Alerts on Suppliers Incomplete or Missing Data
Your team can take care of key supplier information. It is difficult to do business with suppliers missing data point. Reliable supplier management software keeps track of necessary supplier data, expiration dates of documents and alerts the users, when some data is expiring or missing.
Allows Mass Data Updates
Ongoing supplier data management is time consuming and challenging. SRM software is designed to notify multiple suppliers with a request to update their company information. Every supplier’s response is captured individually and seamlessly integrated into its matching supplier record.
- Supplier risk and performance
Thorough evaluation & supplier risk analysis
SRM system allows the users to create specific evaluation metrics related to their business, and analyze the outcomes using measurement indicators.
Automatically Integrate 3rd Party Data
After integrating the SRM software with third party sources users receive supplier’s legal news and financial data accurately and timely. Automatically, users get an overall and objective outlook of the supplier’s performance.
- Improvement plans
Turn compelling events like frequent late shipment or damaged packing can frustrate your main shareholders. Provide transparency and metrics to the suppliers to draw an improvement plan. This can drive suppliers towards high performance.
PrequalUSA helps to manage supplier’s right from initial registration to constant performance assessment to certifications and more. Users gain wide visibility and thus alleviate the risk. How to save time, resources and cash can be understood in details from professionals at prequalusa.com