| In most cases, organisations select key suppliers who | | | | job descriptions. |
| have the ability to deliver a great product or service. | | | | One outcome from the assignment should be higher |
| However, once the contract has been signed and the | | | | retention rates because there will be a better match |
| supplier goes to work, the service you receive | | | | between applicants for jobs and the requirements of |
| doesn't always match expectations. The question | | | | those jobs and because there will be a more clearly |
| that Supplier Relationship Management (SRM) | | | | defined career path. |
| addresses is "why does this happen and what can I | | | | Other typical inputs from suppliers include their |
| do about it?" | | | | capability, knowledge and experience as well as their |
| The reason that supplier performance does not | | | | dependability, reliability and responsiveness. |
| always match expectations is this. Whatever the | | | | The process element of your supplier's offering |
| product or service that your supplier delivers, it will | | | | includes an approach to identifying and understanding |
| involve inputs (such as capability, experience, | | | | your needs as well as project management skills. |
| materials, people) to which the supplier applies a | | | | These elements will vary depending on what you are |
| process. This produces an output which delivers | | | | buying so you should give careful consideration to |
| outcomes and value for you, the buyer. The failure | | | | identifying the attributes a supplier needs during your |
| to turn inputs into the right outputs that deliver the | | | | supplier selection process. |
| right outcomes is the principal reason suppliers fail to | | | | The outputs from the supplier's process vary from |
| perform. | | | | the quality of the work done to the timeliness of |
| An example is that of a consultancy project aimed at | | | | delivery. |
| producing a new organisational design. The inputs to | | | | As with the process element, you will need to |
| this are typically number of consultants, their daily fee | | | | specify these carefully when contracting. |
| rate and their expertise and experience. The process | | | | Finally, the outcome element should deliver what you |
| is the methodology that the consultants apply to | | | | need. Value for money is one obvious outcome but |
| deliver the project. The output will typically be an | | | | you should also identify the outcomes that your |
| organisation structure, roles and responsibilities and | | | | users of the product or service require. |