Maximising the efficiency of a supply chain is an integral part of running a business. Supply is the lifeblood of any company that sells products – the starting point that allows you to make a profit. There’s nothing worse than having errors or slowparts of a supply chain, leading to unhappy customers.
Managing supplier relationships across your business can be challenging, which is why many companies choose to use automated tools to make the process easier. But how are these modern tools used within a supply chain, and how can you get the most outof them?
SRM stands for supplier relationship management. In any company that sells products, you’ll need to create effective relationships with your suppliers. SRM refers to your approach to managing these.
What does this mean in a practical sense? The main goal of SRM is to streamline procurement and create long-lasting bonds with your suppliers.
Some of the main areas included under the umbrella of SRM include supplier contacts, purchase orders and general communications. By taking control of each of these areas, a company can create a productive relationship with a supplier – ensuring that everyone gets a benefit.
Since the advent of digital software, companies have used various programs to help improve their operations. SRM tools can help manage supplier relations and improve supply chains within your business. Here are some of the most common features of modern SRM tools:
Supplier information: If you’re a company with multiple important suppliers, then you’ll need a place to keep track of them. Modern SRM tools contain a centralised database that contains all your important supplier information.
With dedicated supplier dashboards, you can see all your important supplier details without issue, including payment terms, order statuses, your credit limit and full supplier details.
Communication: SRM tools often feature communication channels. This allows you to easily communicate with suppliers – letting you flag and resolve any issues that might occur in the supply chain.
Purchase orders: SRM tools help to smooth the purchasing process. In just a few clicks, you’ll be able to raise a purchase order from a specific supplier.
Bulk supplier prices: It’s common for suppliers to change their prices –this is why it can be important to make quick updates to your system. SRM software will allow you to bulk upload supplier prices and images, with the changes instantly updating.
Financial analysis: Keeping track of how much you are spending with suppliers is another important aspect of SRM. Modern software will allow you to see a breakdown that updates in real time, helping you make important decisions.
You will often find SRM tools included as part of ERP software. ERP (enterprise resource planning) software is a centralised piece of software that integrates many useful tools for running a business. These systems include additional tools that help you manage finances, human resources, manufacturing, customer relationships, data and reporting.
SRM tools can improve supply chain performance by creating better relationships between a company and its suppliers. By centralising data, adding easy communication channels, and streamlining the procurement process, these tools are a sure-fireway to improve a supply chain.
Firstly, SRM tools create a single place for all important data. This means your company can maintain accurate records. Often, these records can be automated meaning you won’t ever need to manually tweak data. Having transparent, accurate records means there won’t be errors that can cost you or your suppliers money and time.
SRM tools will often segment data into simple workflows for employees, letting you easily monitor the performance of your suppliers. You can set custom KPIs (key performance indicators) and highlight any issues such as delivery times and the quality of products supplied to you.
Secondly, SRM tools create easy communication channels that help to build and facilitate supplier relationships. Let’s say there’s a hurdle in the supply of a specific product –with SRM software, your supplier can let you know, allowing you to plan ahead.
Finally, SRM tools allow you to create automated lists and rules to reorder bestsellers. If you always sell high volumes of a particular product each month – SRM tools let you create a rule to reorder instantly without any manual work. This ensures a smooth process and lets you spend your time elsewhere.
Finding the best SRM tools for your business doesn’t have to be a guessing game. You should begin by finding tools that address specific problems you are facing within your supply chain process. Are you missing that direct, easy channel of communication with your suppliers? Maybe you need a single place to add all your data so that you and your team can quickly identify and fix issues.
These are the kinds of issues you should consider when deciding on the best SRM tools for you. Remember that many SRM tools come integrated as part of wider ERP software – so this is a good time for you to consider taking the leap to a modern, automated system.
Managing supplier relationships doesn’t have to be a manual process. With Profit4, a fully integrated, cloud-based ERP software, you will have all of the SRM tools you need to improve your supply chains.
Profit4 places all your important supplier info in one place, including contacts, purchase orders and communications. You’ll be able to view the status of orders raised, raise a PO in just a few clicks, and make automated rules to reorder bestsellers.
Combined with a myriad of other features that help you to run your business efficiently, including stock control, order management, finance and reporting – Profit4 is an all-in-one solution to increase efficiency across your supply chain.
