| The outcome of a good supplier relationship | | | | identify at what level the relationship is and how it |
| management (SRM) programme should be a | | | | can move forward. |
| continuous stream of improvement projects that | | | | The most basic level is called "stabilise". This is where |
| result in increased value for your organisation. But this | | | | the analysis of performance shows inconsistencies in |
| does not just happen. You need a process that | | | | delivering the product or service, either from a |
| delivers it effectively and efficiently. This article | | | | quality, time or cost point of view. Early improvement |
| describes three levels of improvement that should be | | | | projects are aimed at attacking the causes of |
| your aim. | | | | variability so that a consistent and reliable service is |
| As with any improvement project, you need to | | | | achieved. |
| baseline your starting point so that you have | | | | The next level up, once a stable performance has |
| something to measure improvements against. | | | | been achieved, is to improve on that level of |
| The initial baseline you can use for the relationship is | | | | performance. This involves approaches such as Lean |
| based on a thin slice of the EFQM model. A | | | | Design and Six Sigma. |
| representative cross-section of those involved in | | | | The level after this is called the innovate phase. This |
| some way with the supplier and the delivery of the | | | | is where you look at transforming the way the |
| product or service are sent a one page questionnaire | | | | service or product is delivered to achieve a step |
| to fill out. They do this twice; once from their own | | | | change improvement in quality, cost and service. |
| organisation's perspective and once from the point of | | | | The spirit of the SRM programme is that it involves |
| view of how they see the other party. Putting this | | | | continuous improvement. As a result, the main |
| together gives a simple measure of where the | | | | components of the process should be reviewed at |
| relationship is in terms of the enablers of good | | | | regular intervals. |
| performance as well as the performance itself. | | | | Annually, you should check that your SRM partners |
| At regular intervals (typically twice a year) the | | | | are still the right ones and that your joint goals are |
| exercise is revisited to measure the progress that | | | | still the same. More frequently, you should check that |
| has been made. | | | | the pipeline is still filling with potential ideas and that |
| Having baselined the relationship, identified the areas | | | | you still have access to the resources you need to |
| that need to be addressed and having dug into some | | | | make it all happen. |
| of the root causes, you will be in a position to | | | | |