SRM: turning your suppliers into performance partners.

Structuring and managing a Supplier Relationship Management program: strategic segmentation, governance, evaluation, improvement plans and supplier risk management.

The Challenge

Your suppliers represent up to 70% of your costs. How do you manage this relationship?

SRM is probably the least formalized Procurement function, yet it drives operational performance, innovation and corporate resilience. Most organizations treat their suppliers in an undifferentiated way — or worse, opportunistically — instead of structuring a segmented and strategic approach.

Strategic suppliers cannot be managed like commodity suppliers. And conversely: spending governance time on a non-critical supplier wastes your energy. Diwan Advisory helps you build a graduated, efficient and resource-light SRM program.

"Supplier relationships are cultivated. But not all at the same level of attention. The art of SRM is knowing where to invest."

A graduated and operational SRM program.

01

Strategic segmentation

Classification of your supplier panel along a criticality × dependency × performance matrix. Identification of strategic suppliers (typically 5 to 15% of the panel representing 70 to 80% of value).

02

Governance model

Definition of the interaction model per segment: committee frequency, stakeholders, standard agendas, shared indicators. The more strategic, the denser the governance.

03

Performance evaluation

Design and deployment of a multi-criteria evaluation system: quality, cost, delivery, innovation, CSR. Structured periodic feedback to suppliers with corrective actions.

04

Collaborative improvement plans

Co-construction of shared objectives with key suppliers: quality improvement, cost reduction, innovation. Win-win incentive mechanisms, structured follow-up.

05

Supplier risk management

Risk mapping (financial, operational, geopolitical, ESG, cyber). Continuity plans, identification of alternative suppliers, continuous monitoring of weak signals.

06

Collaborative innovation

Mobilizing your suppliers on your innovation challenges: product co-design, optimization suggestions, value-added proposals. The supplier becomes a source of differentiation.

Deliverables

What we structure at your organization.

Expected Benefits

Why SRM changes the game.

Reducing dependency and risk

A clear view of supplier risks allows you to anticipate disruptions (financial, quality, geopolitical) before they become critical. This is the resilience insurance for your business.

Sustainable economic performance

Beyond the one-shot savings of sourcing, SRM generates continuous improvement: productivity, reduction of non-quality, optimization of terms. Often 2 to 5% recurring annual gains.

Access to supplier innovation

Your suppliers have ideas, innovations, best practices. They just need the opportunity to share them. A well-managed SRM becomes a powerful and low-cost innovation channel.

Image and attractiveness

Suppliers choose their clients. A client who manages the relationship well becomes a preferred client, benefiting priority access to the best terms, new products, and capacity in times of constraint.

2 à 5%
Typical recurring annual gains
3 à 6
Months to structure the program
15%
Of the panel deserving your maximum attention

How is your supplier relationship doing?

A few conversations are enough to assess your SRM maturity and identify the first structuring initiatives. No commitment.

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