The world as a space for the supplier relationship
Opinion

The world as a space for the supplier relationship

09/01/2016 Franck Le Tendre – Executive Vice President for Western Europe and Managing Director France
Procurement has changed radically due to developments in technology and globalisation. The crisis and the necessity of seeking performance points at every level of the business have drastically changed procurement’s place in the company, and SRM becomes a tool that is both essential and strategic.
 
 
New technologies and the Internet have allowed procurement to source more broadly, free from geographical limits. The primary need is to reduce costs. Globalised contracts and multiplied links in the subcontracting chain mean information needs to be streamlined for a better handle on supplier risk and to better share information internally. This multitude of parameters has an impact on what people want from an information system: it should help identify the supplier and carefully evaluate them, share this information with all the relevant employees and provide ongoing monitoring.
 
Merely obliging the supplier to be part of this system also acts as a selection measure. Only suppliers meeting the criteria set by the procurement department can be taken on, while only those respecting the procurement-invoice process are retained. This may seem simplistic but many companies, despite being aware of what is at stake, do not have an information system that is capable of dealing with and managing data according to these imperatives. The demand for reducing prices has given rise to extremely complex subcontracting chains. Only an adapted SRM (Supplier Relationship Management) solution makes it possible to identify this chain, evaluate it and take informed decisions, protecting business margins and reputation.
 
Only virtuous suppliers and reliable supplier information can protect a company from risks to its image. The world is changing all the time; conflicts and weather-related disasters also enter into the buyer’s selection criteria. No company wants to take the risk of having their supply-chain frozen when a tornado destroys a factory, because millions are at stake. In the same way, with growing collective awareness on climate and the environment and standards being introduced to match, it is up to procurement to select the most virtuous suppliers in these areas.
 
 
Procurement departments, like finance departments, should have effective tools and simple but fully-equipped dashboards to drive activity. SynerTrade’s daily mission is to observe procurement practices and push forward our eProcurement solutions to adapt them to the present situation and that to come.
Franck Le Tendre – Executive Vice President for Western Europe and Managing Director France

Franck Le Tendre – Executive Vice President for Western Europe and Managing Director France

Franck Le Tendre – Executive Vice President for Western Europe and Managing Director France

 

 

node/92