The supplier relationship management program makes it easier to coordinate with your supplier and maintain a good relationship with them. This should basically be beneficial to both the supplier and the business but a large number of people have been having mixed views on whether this software has more risks than benefits.
The Argument
This software basically eliminates all the barriers to effective delivery of service. It also saves time and normally efficient. A contract between the company and thee supplier is designed to state what has been agreed upon in terms of what will be delivered to the company and at what price.
In short, there can be inefficiencies on how both parties operate and at the end of the day; there are terms that may not be agreed upon. This software has been designed to eliminate these wastes and can improve the quality of services being offered.
Benefits of Using the Software
* It encourages investment. If the suppliers in your SRM program see that the relationship creates value for them and there are possible chances of a long term relationship, there are chances that they will make more investments to supply you with what you need to grow your business. The thing is that they benefit from the relationship too and that’s why they wouldn’t hesitate to invest.
* Makes you independent. A large number of suppliers want a relationship that can last long because it benefits them too. If the SRM program benefits both of you then the suppliers will have the expectation that the relationship will last long. That’s means that when times are hard and your company needs to be supplied with products, you wouldn’t have to worry because you have suppliers who trust you.
Arguments against the Software
* The software makes it difficult to test the market. It is very important to watch your competitors in the market. If your software creates a bespoke solution then it may be difficult for you to get an alternative that will help you test whether or not you are still getting the value for your money.
* At times, it is hard to exit. It is difficult to switch from supplier to another if you are using the supplier relationship management program. The thing is, you may be stuck with one supplier who may not be adding value to your business. You need to explore innovations from other suppliers.
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