SRM provides support for e-sourcing. The tool can be used to tender certain procurements to multiple vendors. The one vendor with the best bid is awarded the contract.
SRM supports in catalogue management. Supplieru2019s catalogues can be accessed via the system, thereby giving you the benefit of reduced data maintenance and an always up-to-date catalogue.
Furthermore SRM supports procurement approvals via workflow. Purchases upto a certain amount can be handled by this procurement officer, and upto an another amount or in a certain area is approved by another manager. Workflow allows for clear segregation of duties.
SNC is a part of the bigger SCM suite, also containing APO. This already marks one difference, SNC ties into your planning processes. It can be seen as an extension of your planning process, rather than an extension of the procurement process.
By using SNC youu2019re collaborating with your suppliers. Youu2019ll send them detailed forecasting and stock information, you plan future promotions. In other words: by informing your suppliers upfront, youu2019re allowing them to take your demand into consideration. Thisu2019ll eventually lead to reduced procurement efforts, better fill rates, reduced lead times and overall lower costs in the supply chain.
The same applies for collaboration with customers, your customers inform you upfront. This allows you to plan their future promotions, to take preventive actions on high demands, for example by hiring extra people or by balancing the load.
SNC aims to increase the demand visibility throughout the supply chain. This is an important countermeasure in reducing the bullwhip effect.
Rahul Sharma
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