SRM GUIDE - Fashion & Luxury
Why integrate supplier relationship management into your procurement strategy?
Transforming supplier relationships has become crucial in today's supply chain ecosystem due to challenges such as globalization, shorter time-to-market, logistical disruptions, and competitive pressures. Companies, particularly in the fashion and luxury sectors, must prioritize their supplier relationships to remain competitive. This guide offers guidance on overcoming these challenges and optimizing the supply chain. Supplier relationship management (SRM) is essential for generating more value and ensuring long-term performance.
STEPS
– STEP 1: Assessing your maturity level
– STEP 2: Defining SMART objectives for effective management
– STEP 3: In-depth knowledge of your suppliers
– STEP 4: Supplier performance at the heart of SRM
– STEP 5: Commitment and mutual collaboration
– STEP 6: Support for continuous improvement
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FAQ - Everything you need to know about Supplier Relationship Management (SRM)
What is Supplier Relationship Management (SRM)?
Supplier Relationship Management, or SRM, refers to the set of methods and tools used to structure and improve the relationship between a company and its suppliers. It encompasses information sharing, performance monitoring, exchange management, and collaboration around operations. An SRM solution like e-SCM digitizes this relationship within a collaborative environment and centralizes the data necessary for supplier management.
What is the difference between an SRM and a supplier portal?
A supplier portal primarily provides a space for suppliers to access information and transmit data to the company. Supplier Relationship Management (SRM) takes a broader approach, focusing on managing and steering the supplier relationship. With e-SCM, the supplier portal integrates with upstream supply chain processes: orders, production, quality, transportation, and performance. Exchanges with suppliers are thus directly linked to the operations they enable the company to manage.
Why digitize the relationship with your suppliers?
Digitalization allows for the replacement of some of the scattered exchanges via email, Excel files, or multiple tools with structured and shared processes. In e-SCM, suppliers can, for example, confirm orders, provide production progress updates, and share necessary documents directly within the platform. This gives teams access to more reliable and up-to-date information, reduces follow-up tasks, and allows them to dedicate more time to managing their supplier network.
What are the benefits of an SRM approach for a company?
An SRM (Supplier Relationship Management) approach improves visibility into the supplier panel, structures communication, and enhances performance tracking. It can also help reduce supply risks, improve data quality, and facilitate the identification of suppliers or operations requiring action. In e-SCM (Supplier Management), this information is directly linked to operational supply chain processes, enabling a shift from simple supplier relationship management to true performance management.
How to implement an effective SRM approach?
A Supplier Relationship Management (SRM) approach begins with identifying strategic suppliers, the information to be shared, and the processes that require greater visibility or collaboration. Next, common rules, performance indicators, and communication methods tailored to different supplier profiles must be defined. Digitalization can support this approach by centralizing information and automating processes. The goal is to build a more structured supplier relationship without adding to the daily workload of teams.
Why is SRM particularly strategic in fashion and textiles?
Fashion and textile companies work with networks of suppliers and subcontractors, often international, while simultaneously adhering to strict production schedules, quality requirements, and delivery deadlines. The quality of supplier relationships therefore directly impacts product availability and supply chain performance. e-SCM specializes in the upstream supply chain for fashion, luxury, and sportswear, connecting supplier interactions with order tracking, production, quality control, and transportation.
Why download the SRM Guide Vol. 1?
The SRM Guide Vol. 1 provides a better understanding of the principles of Supplier Relationship Management, its implications for businesses, and the levers for structuring supplier relationships. It serves as a starting point for organizations wishing to assess their SRM maturity, identify their priorities, and understand how digitalization can improve collaboration and supplier management.