Discover the 5 practices of the SRM (Supplier Relationship Management) solution

SRM

SRM

Companies that want to stand out and remain competitive in the market face many challenges on a daily basis. Aspects related to purchasing inputs, raw materials and providing services are some of them. Therefore, it has become increasingly necessary to seek specialized suppliers who share the same values ​​and cultivate ESG practices in their processes. Factors like these are what drive growth and innovation. And that’s where the concept of a business partner comes in – and not just a simple supplier.

In this sense, in addition to having a P2P (Procure-to-Pay) tool, automating supplier management is essential for organizations to achieve their goals. By adopting a PXNUMXP (Procure-to-Pay) solution, Supplier Relationship Management (SRM), all supplier relationship management is concentrated in a single online environment, where it is possible to control risks and performance, in addition to the classic price, deadline and quality.

Below, learn about the 5 practices of the SRM solution for efficient supplier management in your company:

1. Register

The supplier registration stage is one of the most important, as this is when companies can check whether the future partner meets the minimum legal requirements. When registration is done manually, buyers waste a lot of time checking information with the relevant government agencies and filling out Excel spreadsheets, which can later become out of date.

With a Supplier Relationship Management (SRM) solution, it is possible to have agile interaction between buyers, suppliers and external databases (e.g., Federal Revenue, Sintegra and e-Social). Partner registrations are centralized in a single online tool, which automatically checks the registration status of each supplier.

2. Approval

Supplier approval is essential to keep under control any potential risks that could compromise the quality of the product or service provided and the reputation of your company. During approval, tax, labor, financial, technical and operational, environmental and social responsibility aspects are verified, in addition to compliance with the buyers' internal standards.

Just like the registration stage, manually approving suppliers requires a lot of time from buyers, in addition to increasing the possibility of errors in verifying information. With an SRM solution, different automated approval processes and supplier risk classification can be created, according to the company's needs.

3. Evaluation

To reduce supplier-related risks, supplier performance can be assessed periodically throughout the supply period. In most cases, the supplier assessment stage is carried out through a questionnaire, with questions that must be answered by requesters, service managers and the suppliers themselves.

With a specific digital tool, partners can be evaluated using the Supplier Performance Index (IDF), which shows suppliers' scores and rankings. It is also possible to configure supplier blocking if they do not meet the minimum score required for supply.

4. Third party management

Third-party management is an increasingly prominent issue in companies. To reduce the risks of labor co-liability, it is essential to have access to information about contracted companies and their employees, such as aspects related to occupational health and safety. SRM solution It is a tool that provides a centralized environment to the contracted company, to register all the data of the employees that will be hired, thus simplifying the management of third parties.

5. Inspection

Inspection is a complementary inspection to the third-party approval, evaluation and management processes. When opting for an SRM solution, the supplier inspection practice allows the configuration of several processes related to technical visits, for example, creating specific forms for each type of inspection.

In addition, it enables the creation of final grades, with the addition of the supplier's evaluation and approval results. These activities can be performed internally or by specialized companies, keeping the information centralized in a single online environment.

Now that you know the main practices for efficient supplier management, learn more about our Supplier Relationship Management (SRM) solution.

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