Eskom Procurement Book 2015

SUPPLIER RELATIONSHIP MANAGEMENT

paid). Segmentation should also be reviewed annually. Figure 5.3 is a rank order pyramid depicting a typical supplier segmentation matrix in an organisation.

Figure 5.3: Supplier segmentation pyramid.

5.3.5.2 Executive Support

There is no organisational programme that will succeed without the support of the top executives. The same applies to SRM programmes. It is therefore important that top executives also be engaged in managing the most strategic suppliers. The involvement of strategic managers facilitates the alignment of strategic objectives internally and with the supplier. It also sets the right tone for the relationship, thereby creating value for both parties. When a policy tailor-made to suit a specific organisational programme is put in place, it will be easier for management and staff to follow the guidelines given in the policy for the effective implementation of the programme. Therefore, it is important that there is a laid-down policy that governs and directs the management of supplier relationships, as well as the assignment of roles and responsibilities internally. Acquire and co-opt technologies that strongly support SRM. Contract management or supplier performance management systems should not be confused with SRM systems. However, centralised web-based information portals, similar to customer relationship management systems on the sales side, are available on the market. The recent upsurge in Internet connectivity has created new ways to identify, negotiate and engage with suppliers and partners

5.3.5.3 Established SRM Policies

5.3.5.4 Use of Technology

102 CHAPTER 5