Kekc specializes in sourcing and trading strategies, supply chain optimization, and effective relationship management with suppliers, partners, and stakeholders. Today, we are diving into Supplier Relationship Management (SRM) — specifically, how to choose the most suitable SRM approach for your business needs.
Understanding SRM: Which Model Fits Your Business?
Selecting the right SRM model can significantly impact your business. This way, you can reduce time-to-market terms, optimize costs, boost your revenue, and drive innovation-focused strategies. To help you pick sides with the best-matching SRM, we are going to review the three primary types of SRM that can elevate your operational performance and strengthen your partnerships.
1. Operational SRM
Best for: Companies prioritizing efficiency, invoicing accuracy, and streamlined processes.
This foundational approach focuses on performance metrics, cost control, and process simplification. It’s ideal for businesses managing high transaction volumes and aiming to improve routine operations like invoicing, procurement, and inventory tracking.
2. Collaborative SRM
Best for: Businesses looking to foster stronger supplier partnerships and improve engagement. This approach goes beyond operations by emphasizing joint planning, communication, and knowledge sharing. It supports long-term collaboration with key suppliers and stakeholders, helping you stay proactive in both local and international markets.
3. Strategic SRM
Best for: Organizations aiming to innovate, co-develop products or services, and enter new markets. Strategic SRM is ideal for companies with a focus on R&D, market expansion, and building high-value relationships. It enables joint initiatives, research collaborations, and strategic planning with suppliers and partners.
Which SRM Is Right for You?
Each SRM model addresses different business goals:
- Operational SRM improves routine, transactional efficiency.
- Collaborative SRM enhances supplier communication and mutual planning.
- Strategic SRM supports innovation and long-term value creation.
Your choice should be based on your company’s unique challenges and strategic objectives. Focus on the functionality and capabilities you need most — whether you are focused on cost control, better communication, or strategic development. Stay tuned not to miss new posts in the Kekc blog!
Pro Tip: Most businesses start with Operational SRM, as it effectively handles everyday supplier management tasks, especially in complex or international supply chains.
Need help choosing the right SRM or implementing one effectively? LaSale Mondial is here to support you every step of the way.
Stay tuned to our blog for more insights and expert advice on boosting your trading and sourcing performance.
