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Supplier Relationship Management – (SRM)

Raising the Bar

Supplier Relationship Management – (SRM)

Challenges:

The dependence of fast growing construction industry on its suppliers and sub-contractors is increasing. The efficiency of the supply chain is vital to the overall efficiency of the organization. The key challenges include:

  • Providing platform for domestic as well as international suppliers to approach the organization
  • Communication between suppliers and organization involving many stakeholders and different communication channels resulting in loss of communication
  • Constant tracking and updation of supplier information
  • Managing the documentation with suppliers
  • Need for transparency between organizations and its suppliers/ sub-contractors for a mature relationship

The Solution:

To address the challenges, supplier portal can be an effective tool that enables collaboration between suppliers, sub-contractors and transporters by providing customized, partner-specific access to buyer’s content, services and applications through internet. It is a centralized portal which automates the large part of the procurement process. Some of the features are as follows:

  • Platform for suppliers willing to associate with the organization, where they can furnish their details.
  • The procurement process can be digitized, right from listing RFQ/ RFP on the portal to suppliers accessing the same and submitting their bid online. e-tendering can also take place using supplier portal.
  • The finalized details along with prices, terms and conditions can be integrated with organization’s ERP system for generating the purchase order/ work order and getting it authorized.
  • Communications such as shipping details by supplier, goods receipt note by organization, taxation data, certificates can be exchanged electronically
  • The invoice processing can be automated by integrating supplier portal with ERP
  • Complete digital record of the history of the supplier can be maintained which can be used for a more scientific vendor evaluation. Various MIS reports can also be made available for the organization as well as for the suppliers.
  • Security of data can be maintained by defining levels of access/ facilities that they want to provide to each class of supplier.

Benefits For construction organization

  • Platform for strengthening vendor base
  • Facilitate vendor development process
  • Reduced risk of delays in supply
  • Improved order-fill rates
  • Reduced inventory levels
  • Reduced downtime & overtime
  • Improved efficiency of the buyers and their support staff

Benefits For supplier

  • Faster order-to-cash cycle
  • Insights into own performance
  • Better capacity utilization
  • Increased inventory turns
  • Increased order-fill rates

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