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SRM and Supplier Recognition - II
April 11, 2008
Last year I was speaking with the acting head of procurement at a fairly sizeable company (revenues greater than $1 billion). He mentioned that his former CPO, who left the company after less than 18 months, had been involved with an SRM consulting project at their company. He identified the consulting firm, and mentioned that this engagement lasted four months, and cost some large, untold figure.
My question was simple: what did you get for the four month project and the sizeable consultant’s bill? His answer shocked me: “We think we now know how to segment our supplier base.”
Further questions confirmed what I suspected: this company did not have a strong foundation for supply management transformation, and it did not have strong supply management business processes such as a rigorous strategic sourcing and negotiations management process. This firm, which was now in a state of partial paralysis in its supply management organization, did not need a SRM consulting project. What it really could have used was a candid assessment of its current state in supply management, and a basic roadmap that would introduce the transformation elements (as we’ve identified them in earlier blogs) in the right sequence.
Ok. Enough about SRM for the time being. Let’s move on to Supplier Recognition in the next posting.
Posted by Robert A. Rudzki on April 11, 2008 | Comments (0)