Supplier Relationship Management (SRM) is defined as a proactive approach to effectively managing business's relationship with vendors who provide services and the goods, it uses. The aim of implementing SRM is to simplify and make more effective the practices between an enterprise and its service providing companies, called as suppliers.
In other words, supplier relationship management involves an inclusive management of supplier-vendor relationship to beat the market competition.
Detailed View of Supply Chain Management and its Advantages
Well planned supplier relationship management software can be of great advantage for a business house. Once, the procurement team, responsible for acquiring the goods and/or services for running the business has affianced a supplier, there is a need to strike a balance of control in the new association to make sure that profit of that deal is being delivered. In an absence of appropriate management and control, there are chances that the value of a deal can go down considerably. It can result in not only the failure of an organization in delivering the anticipated profit but also in infuriating and disappointing relations which in turn can impact business's ability to get accustomed to changing market influences.
There is other advantages supplier relationship management system as well, apart from maintaining healthy relationships with suppliers as seen from a customer point of view. There are supplier relationship management software packages that also comprises of various important modules offering functions such as inventory management and logistics solutions, important in managing the business operations well.
An inventory management tool offers details about the size and placement of goods in stock and it finds its application across varied locations within a facility or within multiple locations of a supply network to safeguard the normal and intended course of production against the unsystematic interruptions of running out of stock or goods.
Likewise, a logistics solutions module present in the supplier relationship management system is also of great importance as it plays a significant role in strengthening the productivity and growth of any business house. Logistics in general is defined as a process that involves the planning, implementation and control to ensure the efficient, cost-effective supply and storage of goods, inventory, finished products and related info from the starting point to point of utilization for the purpose of meeting customer requirements. Thus, a well-defined logistics solutions module in a robust supplier relationship management offers a great deal of help in managing the business.
Apart from the above mentioned key modules in a supplier relationship management software system, there can be various numbers of other key modules depending upon the nature of the business and its specific needs. However, in general, a standard supplier relationship management is made up of three basic modules which are Supplier Segmentation, Governance, and Measurement.
Less Software is one such company that provides quality supplier relationship management software systems for your business. They have successfully delivered software for supply chain management across different business domains. They are pioneer expertise in developing customized supplier relationship management software including modules such as inventory management and logistics solutions, helping you manage your business well.
Supply chain management (SCM) is the management of an interconnected network, channel and node businesses involved in the provision of product and service packages required by the end customers.
Briefly, what supply chain management does is, ensures proper movement of goods from manufacturing unit to packaging unit. It all starts with raw materials collection, moving to production (work in progress), and eventually converts into the finished goods for final consumption. A supply chain management system manages supplier, manufacturer, wholesaler, and retailer. This entire process of supply chain management is conducted with concrete guidance and assistance. Converting the raw materials into usable products would become impossible and inappropriate for production units, without such surveillance. Imagine functioning of a major production unit without supply chain management solutions, and you would get to know the significance and value of such system. Supply chain management solutions providing firms maintains trade logistics, demand of the consumers, storage of the product, transportation involved, etc before the goods could be used by the consumer.
Objective of Supply Chain Management
Which company does not want to satisfy its consumers? They all are here to ensure what consumers need and whether we could deliver it effectively. The sole objective of supply chain management system is to ensure customer satisfaction. Timely delivery of goods, proper condition of goods, safe transportation is what a supply chain management solution does. Not just customer's satisfaction, companies also look to get the competitive advantage over their counterparts in the market, which can be ensured through an effective supply chain management system; hence, a supply chain management solution ensures that the information between channels like procurement unit, manufacturing unit, packaging unit, etc is transferred effectively and aptly. Supply chain management does not only manage the flow of product from raw material to finished one, but also effectively transfers information between important channels in the factory. With this, the flow of goods as well as the flow of the information becomes smooth.
Organizations with Supply Chain Management Solutions
The use of technology is quite evident in logistics. Organizations utilizing supply chain management solutions are the masters in logistics. The system ensures effective management of every portion of supply chain with the help of:
- Warehouse Management Systems
- Transportation Management Systems
- Trade Logistics – International Trade Logistics
- Supplier Relationship Management
- Demand Management
- Finished Product Packaging.
With this, each and every movement of goods is supervised and any form of damage can be controlled immediately.
Gone are the days when huge factories where handled manually today, at just one click you get the entire gist of where your product is lying in the manufacturing process, and that's the magic of supply chain management systems. The system does not only provide details for goods but also identifies issues and accordingly gives solutions also.
There are supplier relationship management software packages that also comprises of various important modules offering functions such as inventory management and logistics solutions, important in managing the business operations well.