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Vodafone

Following a highly successful Supplier Performance Management (SPM) Programme, Vodafone made the decision to build on this and deliver supplier relationship management (SRM) to unlock additional value from strategic suppliers. The aim of this was to focus on the most strategic supplier relationships across all categories to ensure the greatest return on investment was realised.

Aim

The aim of developing SRM was to ensure value negotiated prior to contract execution is maintained throughout the life of the contract but more importantly, to allow extra value to be unlocked through closer collaboration with suppliers.
 

Approach

Implementation was broken down into three distinct phases. These are:
 
  • Development of SRM (tools, techniques and templates)
  • Pilot new ways of working with SRM (current phase)
  • Amend as required and roll-out to all strategic suppliers
Having designed the process along with the tools, techniques and templates, Vodafone is using a web-based supplier management system as the change agent for the SRM rollout.
 

Challenges

To be truly successful SRM must pull together information from all interfaces with suppliers from across the organisation. The size and complexity of Vodafone’s operations (multiple global operating companies, partner markets, etc.) was the biggest challenge for rolling out SRM.
 

Success

Building on the existing SPM success, SRM is already proving to be invaluable in coordinating stakeholders across the business, aligning resources and exploring additional mutual value in the pilot suppliers. The expectation is that this will only grow further as time continues.

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2020 Global SRM Research Report - Supplier Management at Speed.

Now in its 12th year, this year we have seen an increase of 29% in the number of companies responding compared to 2019. In addition, the proportion of respondents at CPO/EVP level or equivalent has increased to over 50%. Learn how now, more than ever before, procurement has the opportunity to make the case for SRM to ensure organisations don’t just survive but thrive.

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