Why is Supplier Relationship Management important?

Why is SRM (Supplier Relationship Management) important?

When I started working in a commercial role in the Plastics Industry in the late 1980’s the relationship between customers and suppliers was often adversarial, with the general view that customers could browbeat suppliers into better commercial terms with a major emphasis on price and credit terms.

As a salesperson these were challenging times, and it appeared that customers were omnipotent. In contrast on the supply side consolidation in the petrochemicals sector was rapidly gaining pace and in a virtual game of musical chairs it soon became evident that in contrast to the sales side for distributors the relationships with polymer producers were in short supply and often fragile.

Of course out of adversity comes strength and distributors such as Plastribution learnt that in the business of polymer distribution Supplier Relationship Management was an essential ingredient for survival.

Fortunately the race to lower prices reached its inevitable conclusion, and gradually customers have moved their focus from price to value and in that approach understood the importance of service and reliability along with price as part of the equation.

So today we believe that partnership in the true sense of the word is vital to the sustainability of business, and in that ideal we seek to work with our suppliers in a manner that helps us to be the preferred choice of UK plastic processors. Above all this requires, communication, honesty and a constant focus on delivering value.

Whilst we do not claim to be uniquely positioned between customers and suppliers, we do work hard on making Plastribution your vital link in the polymer supply chain connecting you, our customers, through our partnership with the world’s best polymer producers.