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Supplier Lifecycle Management (SLM)

The document discusses supplier lifecycle management. It involves segmenting, qualifying, integrating, collaborating with, developing the capabilities of, managing the performance of, phasing out, and maintaining governance over suppliers. Supplier relationship management aims to create positive buyer-supplier relationships and a resilient supply chain. It involves segmenting suppliers, addressing challenges, defining future outlooks, and providing methodologies. The benefits of strong supplier relationship management include stronger strategic partnerships and value creation. Future outlooks involve enhanced collaboration, technology innovation, and stronger partnerships.

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88 views4 pages

Supplier Lifecycle Management (SLM)

The document discusses supplier lifecycle management. It involves segmenting, qualifying, integrating, collaborating with, developing the capabilities of, managing the performance of, phasing out, and maintaining governance over suppliers. Supplier relationship management aims to create positive buyer-supplier relationships and a resilient supply chain. It involves segmenting suppliers, addressing challenges, defining future outlooks, and providing methodologies. The benefits of strong supplier relationship management include stronger strategic partnerships and value creation. Future outlooks involve enhanced collaboration, technology innovation, and stronger partnerships.

Uploaded by

Sandra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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LECTURE 4 Supplier Management

Supplier Lifecycle Management(SLM)


A harmonized supplier lifecycle process overview
Overview: Supplier Lifecycle Management
 Segment suppliers
 Qualify suppliers
 Integrate suppliers
 Collaborate with suppliers
 Development supplier capabilities
 Manage supplier performance
 Phase out suppliers
 Maintain supplier management governance
What is supplier relationship management (SRM)
 Positive buyer-supplier relationships
 Strategic supplier management based on spend category
 Enhanced risk mitigation mechanism
 Resilient supply chain
 Key Components
 Segmenting Suppliers
 Addressing Challenges
 Defining a Future Outlook
 Providing Methodology
Supplier relationship management framework
 Supplier qualification
 Supplier performance management
Supplier risk management
 Supplier development and diversity
 Supplier collaboration
 Supplier phase out
Benefit of SRM Stronger strategic partnerships
Value creation for the organization
Future outlook for SRM
 Enhanced supplier collaboration
 Technology innovation
 Forming stronger partnership
 Supplier Relationship
 Strategic Partnerships
 Strategic Alliance
Case study: Toyota
Supplier segmentation
Recap: Kraljic’s supply matrix
 Leverage items
 Strategic items
 Non critical items
 Bottleneck items
Supplier segmentation
 Important
 Strategic collaboration
 Tactical
 Selective collaboration
Portfolio analysis and typical contract durations
Supplier strategy-Basic supplier strategies
Supplier strategy-others outsourcing
Supply base optimization
Early supplier design involvement
Global sourcing
Long-term supplier relationships
Supply risk management
Supplier development
Total cost of ownership (TCO)
E-reverse auctions
Supplier’s voice and supplier preferencing
 Development
 Core
 Nuisance
 Exploitable

Supplier Qualification
When to measure launching of new model/project
Supplier development
Purchasing initiation
Risk mitigation
Professional sourcing
Agreement negotiation
How to measure
 Understand purchase requirement relative to business unit objectives
 Conduct thorough spend analysis
 Identify specific internal users
 Identify current suppliers
 Research supply marketplace
 Information Required
Conducting market research on suppliers
 Porter’s Five Forces Model
 Triangulation
 Supplier Analysis
 SWOT ANALYSIS
What to measure
 financial strengths
 Production or service capability
 Human resources
 Corporate performance
 Quality performance
 Information technology
Checklist for supplier visits Personnel-attitudes
Personnel-skills and know how of supervisors
Production equipment adequacy and maintenance
Means of quality control
Housekeeping
Competence of management and technical staffs
Purpose of assessment
 Identify and mitigate supply chain risk
 Supply chain establishment and integration
 Business partnering
 Manage new trading partner relationship
 Supplier acquisition or merging
 Joint product or market development
Supplier compliance supply chain rick
Guidelines and requirements
Outcomes
Supplier code of conduct
 Major Areas to be Covered
 Objective of the Document
 Features
Example (SCC of HKJC /HUAWEI)

Supplier performance management


Introduction of SPM
 Introduction
 Objective
 Process
 Define governance structure
 Define performance metrics and set-up scorecard
 Monitor and discuss performance with suppliers
 Address performance issues

Supplier Risk Management


Introduction of SRM
 Introduction
 Objective
 Process
 Identification and assessment
 Prioritization and monitoring
 Mitigation and improvement
 Periodic review
TPRM Government
 Three lines of defense
 Government-Common practice
Key takeaways for an integrated SRM
 Develop an integrated supplier database
 Translate risk data into predictive intelligence
 Segment suppliers into risk categories
 Keep supplier assessments up to data

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