114 / 252
102
CHAPTER 5
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.
5.3.5.3 Established SRM Policies
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.
5.3.5.4 Use of Technology
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