3.2.11.

Supplier Relationship Management

the systematic approach of
Supplier relationship management (SRM) is success, determining
assessing supplier"contributions and influence on
maximize suppliers' performance and developing the strategic
tactics to determinations. It helps to create
approach for executing on these
determines which activities to
positivebuyer-supplier relationships and
engage in with each supplier.
relationship management is used by supply chain professionals
Supplier management and
involved in areas such as procurement, project
these professionals regularly deal with suppliers. SRM
operations where
includes both business practices and software.
Relationship Management (SRM) application automates,
The Supplier processes for goods and services.
simplifies, and accelerates procure-to-pay
reduce procurement costs, build collaborative supplier
With ERP SRM, one can with
and improve bottom line wi
relationships, better manage supply bases,
innovative offerings and a faster time to market.

With Supplier Relationship Management, one can procurement a

effectivelyfunction,
entire procurement process. One can streamline
strategic weapon. He/she can source the ng
aSIOm t into a He/she can
materials and services - quickly and cost effectively.
ennance relationships with suppliers and identify cost a e
 of
Oherview ERP(Module-3) 275
opportunities, The solution also enables one to support and coordinate
various deepartments, particularly with the accounting department.
with
In
adddition, one can automate the ordering process through MRP
Material Requirement Planning) &reorder planning and enable alert
mechanism via SMS and Email. SRM also offers excellent tools to
managethird-party subcontractor relationships efficiently.
capabilities of SRM:
Following are the of
Assessment Purchasing and Sourcing processes- Direct and
)
Indirect
Practices)
) Spend analysis and Sourcing Strategy (Industry Best
contracts, approval
) e-Procurement Strategy Development (Catalogs,
workflow, payment processing, e-Document exchange)
4) Business Requirements and Gap Analysis -Sourcing and SRM)
5) Solution design and Blueprinting (SAP EBP,
Management
6) Supplier adoption and Relationship
design
7) System landscape and architecture
8) Project Leadership and Execution
9) Program Management
10)User training and change management
monitoring
11)Application support and KPI
management are:
The big issues in supplier relations
over all categories of spending
1) Lack of visibility and control suppliers
2) Inefficient communication with
3) Manual, labor-intensive processes
supply base
4) Not leveraging complete
insight into activity, performance, or spend
)) Nosingle integrated
Subsystems of SRM
Subsystems of SRM

Supplier Management Purchasing

Receiving Subcontracting

Imports Supplier Portal

one to
Management: Supplier Management allowsmonitor their
) Supplier approved vendors and analyse and
as
capture details of He/she can store details such
performance over time, objectively.
maximum order quantities, and
use
times, minimum and
rates, lead RFQStrategies.
this information to formulate
 ERP) BPUT
(Fundamentals of IT &
MBA Second Semester quotations, and
276 compare
One can release RFOs to performance of the supplier,
various vendors,
decisions based on past appropriate tax regions and
take the right can also map enable hassle free
etc. He/she to
prices quoted, and items
for suppliers
tax categories tax calculations.
transactions with the right your ways T
oing
Purchasing adapts to based on rules,
SRM requests
2) Purchasing:generate automatic purchase record purchase orders from
DusinesS - order, route or
multiple items in a single the Purchase Quotation
enter suppliers, use
one time/regular
purchase orders, and do a lot more.
create direct and check for
numbers
goods, track lot/serial allow for tolerances
also receive purchase order,
One can purchase of high
with the original
quality,match accordingly. He/she can control
budgets. He/she can
and document capital items by providing Ordering stages.
value goods andcontrol during RFQ,Quotation and
enforce buyer execute all the necessary
helps one
Receiving: SRM Receiving He/she can check and record
3) goods receipt. defective goods, if
processes involved in and return
of goods, He/she can record details
both the quantity and qualityrejectionnote.
the supplier with a agency
information, quality solution
any, to lot/serial
supplier The
such as attributes, incoming material in great detail. The
details, etc. - of the ensure a seamless experience. data
Quality to allows for faster
is integrated with Goods Receipt interface
simplified and elegant
entry. tools for
offers many
Subcontracting: SRM Subcontracting subcontracting process.
4) complete
effectively managing theInventory, Purchasing and Finance, the
Seamlessly integrated with cost effective sources,
evaluate and identify
solution helps one issues and receipts. One can benefit
material
manage and control management with pricelist and BOM-based
from effective order items in work-in-progress (WIP), TaCk
ordering capabilities, track information on any given date, and
Item-wise and supplier-wise
reconciliation of the issued items.
oversee automatic
items from different
can procure
5) Imports: With SRM Imports one options. The solution supports
has
geographies with multiple currency imports. The solution
efficient cargo tracking and clearance for payment terms,
built-in template for 'Letter of Credit' related Additionally,the
required for completing import documentation. import duty and
solution supports creation of bonded warehouses,
assessablevalue calculations, and import duty paymens
Oveniew of ERP (Module-3)
6 Supplier Portal: SRM Supplier Portal 277
information enablement platform for helps one set up an
wendors can rcgister with one using suppliers/vendors. New
bring them this
under the approved vendor platform, and he/she can
cessing this portal, suppiiers can get list after due
tetanding. status of purchase rea-time diligence.
informnation on
By
total
S etc. With
this, suppliers areorders, goods receipt and return
hain and can plan their operations mOre closely
better. aligned to supply