Supplier management consulting

State of Flux offers supplier relationship management (SRM), supplier performance management (SPM) and supply chain risk management consultancy solutions.

State of Flux’s contribution is aligned to every stage in the evolution of SRM and SPM, from current state diagnostics and creating the value proposition, through to design, implementation and steady state management. We have the experience and credentials to demonstrate that we understand the reality as well as the theory.
 
Hear Mel Shutes, Head of SRM at State of Flux, on ten supplier relationship management essentials.
 
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Our SRM and SPM consulting solutions include:
 

Supplier relationship management (SRM) and supplier performance management (SPM) diagnostic

We undertake a detailed diagnostic of your current SRM or SPM programme, comparing it against your industry peers and wider best practice. This is used not simply to have a ‘must do better’ diagnosis, but to build a detailed improvement plan with input from our subject matter experts. Through the diagnostic, you build and validate your SRM or SPM value proposition and business case.
 
We conduct an SRM or SPM diagnostic tailored to your specific needs and budget. No matter how mature your approach to SRM or SPM, we identify strengths and areas for potential improvement. We also support the change management and implementation delivery.
 

Voice of the supplier

Our voice of the supplier analysis provides an insight into how your organisation is perceived by your key suppliers. It enables you to understand your strengths and weaknesses as a customer of choice.
 
Conducted as a standalone activity or as part of a wider SRM diagnostic, the model asks your suppliers to rate the quality of the relationship they have with your organisation and compare it with the relationships they have with other customers (who could be your major competitors).
 
We work closely with you to develop the appropriate online survey question set, to get the information you need to develop your customer of choice strategy. We manage the full survey process, including targeted interviews to ‘drill down’ into the issues highlighted by the survey; a full analysis of results and feedback; support for strategy development; and implementation.
 
Learn more on how gathering feedback from your suppliers helps you achieve customer of choice benefits.
 
 

Voice of the business

Our voice of the business analysis provides an insight into how well the key stakeholders in your organisation understand SRM or SPM, its potential value and alignment to their needs. Again conducted as a standalone activity or as part of a wider SRM or SPM diagnostic, the model asks your stakeholders to provide honest feedback in a number of areas, including what they think about SRM or SPM now, what it should be focusing on in the future and what it will take to secure their support.
 
We help you to get the information you need to develop an SRM or SPM approach that will engage stakeholders and gain their support.
 

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Supplier relationship management (SRM) 360 degree relationship assessment

We help you develop your key supplier relationships to become more productive and mutually beneficial. We baseline your relationship; develop and implement improvement activities; and periodically measure progress alongside more tangible outputs.

Our relationship assessment provides an in-depth view of a specific customer-supplier relationship. We ask the key stakeholders on both sides of the relationship to complete a bespoke 360 degree feedback questionnaire; the results of which enable them to understand each other’s motivations, plans and goals – and how they see the current state of the business relationship.

We produce a gap analysis of the survey data to highlight the areas of the relationship that need to be improved (see spider diagram below). This analysis is followed by joint workshops where stakeholders can identify, agree ownership of and draw up action plans to address each issue.

Supplier relationship management (SRM) 360 degree relationship assessment

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Supplier relationship management (SRM) and supplier performance management (SPM) governance and process

SRM and SPM programme design, build and implementation

We help you develop your SRM or SPM programme, drawing on our deep understanding of best practice, gained from our extensive research and direct experience of designing, building and implementing SRM and SPM programmes for some of the world’s leading companies.
 
You avoid the mistakes made by many organisations approaching SRM or SPM for the first time. We enable you to implement your SRM or SPM programme at pace, bridging the gap with more advanced organisations and delivering benefits sooner.
 
We form an integral part of your programme team and provide access to best-in-class process, tools, technology and training. Or we provide a fully resourced and project-managed service to design, build and implement your SRM or SPM programme, while transferring skills and capability into your organisation.
 

Segmentation

We help you segment your supplier base to identify those suppliers that are truly critical to your business. Our segmentation approach takes multiple business-relevant criteria into account and assigns a weight to them. This segmentation is used to develop your SRM or SPM approach, optimising the use of scarce resources on the relationships which really make a difference. The segmentation also adds an extra dimension to your risk awareness and risk management.

We work closely with you to understand your organisation and what criteria are important for segmenting suppliers; and what your expectations are, of strategic and critical suppliers in particular. We create a tool that is consistent and repeatable in segmenting suppliers into the various tiers, and work with you to determine the appropriate supplier management treatment strategies for each tier.

SRM and SPM governance models

We help you get the right people in both your organisation and the supplier’s, talking to each other about the right things, at the right time and in the right way.

Governance is essential for effective SRM. Without proper governance, relationships are subject to the personal style and preferences of those involved. We work with you to develop the appropriate governance models, creating the framework within which effective SRM takes place.

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