Essential Consultancy Services
Supplier Relationship Management Profiling
Profiling supplier relationships helps to establish points of possible tension allowing them to be managed.
Profiling the nature of the supply, and the factors likely to characterise the relationship between a customer and a supplier, will provide an insight into possible tensions in the relationship likely to result from differences in priorities, commercial environments, risk profiles etc.
Action may then be taken from the outset to address these potential hot-spots, through the relationship management processes, and where relevant through additional contractual commitments.
Profiling the Supply
Understand the extent to which it is a product supply, and the extent to which it is a service supply. This profiling will help to ensure that both product and service elements are recognised in the contract, and that relationship management processes are tailored appropriately.
Services in particular require particular attention to ensure that processes are complete between organisations, and that relevant management processes have been instituted to review and improve service. More detailed profiling for services will reveal the number of service levels, the degree and points of dependence on other suppliers, or the customer, and the degree of customisation.
Understanding the degree of customisation it important to both organisations. The customer runs the risk of being locked in to a supplier, and supplier runs the risk of not being able realise economies of scale across its customer base, because of increased development and operational costs.
Profiling the Relationship
Any one relationship will be characterised by a number of factors such as:
Some examples of why such profiling needs to be understood.
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