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Supplier Relationship Management Risks

Supplier Relationship Management Risks

Most things in business are achieved through people. The Supplier Relationship Management risk data set probes how the relationships are managed recognising that there are a wide range of staff engaged in this activity.

The creation of excellent supplier relationships requires expert knowledge and skills, and the capability to deal with suppliers at all levels, including Divisional and Group Board Directors.

Procurement has a key role although it is important to recognise that other functions interface with suppliers. The presentation of a unified approach and message to suppliers is vital. Therefore the accountability for relationship management cannot be the sole domain of procurement, although they should manage the overall strategy.

The risks that are derived from inadequate relationship management will manifest themselves when the supplier decides who to make the customer of first choice when resources or capacity are an issue. The business benefits will include a more cost effective relationship management approach, warning of supply problems and more certainty that your customers will enjoy your first class service - This is the essence of long-term business performance.

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