Supplier Relationship Management
4 steps to rebuilding customer-supplier relationships
By Justin Brown
Many customer-supplier relationships were weakened or damaged during the economic downturn. To rescue them, both sides need to acknowledge past mistakes, identify the causes of those problems, take corrective action, and monitor the results.
As of this writing, all signs are pointing toward recovery, and economic indicators (take your pick) are suggesting a better ending to 2010 than we experienced in 2009. Optimistic whispers in the first few months of this year became clearly audible announcements when Quarter 1 earnings were released. Demand is on the rise, slashed capacity is beginning to fill up, and at many companies, earnings will exceed expectations.
Despite the fact that business is improving in most industries, companies will continue to struggle for some time to overcome the effects of the recession on their supply chains. This is especially true for those that made drastic decisions and acted in ways that altered their supply chain capacity and supplier services.
Customer-supplier relationships have been caught up in this turmoil and have often suffered as a result. The economic upheaval of the past 18 months has left many relationships weakened, damaged, or even severed. With demand increasing, now is the time for buyers and suppliers to assess the current state of their relationships and then address or resolve any concerns. This can be accomplished through a four-step process that includes acknowledging what has happened, identifying the causes of any problems, agreeing on and implementing corrective actions, and following up and maintaining the improved relationship.
These steps should be carried out within your company's supplier relationship management (SRM) program. SRM is a formalized process through which companies build strong, collaborative relationships with their vital suppliers to make improvements and achieve their mutual supply chain goals. If you do not
By Justin Brown
Many customer-supplier relationships were weakened or damaged during the economic downturn. To rescue them, both sides need to acknowledge past mistakes, identify the causes of those problems, take corrective action, and monitor the results.
As of this writing, all signs are pointing toward recovery, and economic indicators (take your pick) are suggesting a better ending to 2010 than we experienced in 2009. Optimistic whispers in the first few months of this year became clearly audible announcements when Quarter 1 earnings were released. Demand is on the rise, slashed capacity is beginning to fill up, and at many companies, earnings will exceed expectations.
Despite the fact that business is improving in most industries, companies will continue to struggle for some time to overcome the effects of the recession on their supply chains. This is especially true for those that made drastic decisions and acted in ways that altered their supply chain capacity and supplier services.
Customer-supplier relationships have been caught up in this turmoil and have often suffered as a result. The economic upheaval of the past 18 months has left many relationships weakened, damaged, or even severed. With demand increasing, now is the time for buyers and suppliers to assess the current state of their relationships and then address or resolve any concerns. This can be accomplished through a four-step process that includes acknowledging what has happened, identifying the causes of any problems, agreeing on and implementing corrective actions, and following up and maintaining the improved relationship.
These steps should be carried out within your company's supplier relationship management (SRM) program. SRM is a formalized process through which companies build strong, collaborative relationships with their vital suppliers to make improvements and achieve their mutual supply chain goals. If you do not