Tony Abel, Protiviti Managing Director, Supply Chain
Certain supplier relationships can be restraining—a supplier with whom negotiations are challenging and the ability to leverage volume or spend is limited, for example. Without traditional leverage or any apparent substitute suppliers, how can procurement continue to drive value for the organization? In many cases, the answer is to focus on longer-term supplier relationship management (SRM), not just immediate cost savings. With an SRM approach, companies can convert difficult supplier relationships from a problem to a partnership. This article describes how to get to and achieve the SRM model.