Supplier Relationship Management Software | Features & Benefits

Supplier Relationship Management (SRM) Software - ScienceSoft

ScienceSoft offers software consulting services that help companies implement robust SRM solutions to optimize their supply chains.

The Essence of Supplier Relationship Management Software

Supplier relationship management (SRM) software centralizes supplier-related data, helps select fitting suppliers, analyzes their performance, and identifies related risks to improve supplier collaboration planning and management.

SRM Software Benefits

  • Supplier data integrity and visibility into multiple tiers of the supply chain.
  • Automation of day-to-day SRM operations (procurement, supplier performance monitoring, etc.).
  • Simplified supplier onboarding and pre-qualification.
  • Better supplier engagement with supplier-faced functionality and communication tools.
  • Detailed supplier performance analytics to make informed SRM-related decisions (make better procurement choices, initiate changes in cooperation with the suppliers, etc.).
  • Increased reliability and supply chain compliance with the industry regulations and business requirements due to comprehensive supplier risk management.

Supplier data management

  • Registration of suppliers and sub-suppliers by sourcing specialists or self-registration via the supplier portal.
  • Storage and tracking of all supplier data (supplier interaction history and ongoing activities, current capacity and pricing, general information about the companies).
  • Document storage (contracts with suppliers, invoices, certifications proving supplier compliance with the business requirements, etc.).
  • Search engine with filtering and metadata querying to navigate supplier data and documents.
  • Automated linking of related data records (e.g., all records related to a particular supplier can be accessed in a supplier profile).
  • Personal/bulk notifications about updates in supplier data or sourcing & procurement activities to involved specialists.

Bidding and supplier selection

  • Setup of supplier compliance requirements (quality standards, capacity, sustainability, delivery terms, etc.).
  • AI-based supplier pre-qualification (to assess their financial stability, regulatory compliance, risk of supply disruptions, etc.).
  • Quick form-based creation of sourcing events (e-tenders, e-auctions).
  • Automated sourcing event approval workflow.
  • Sourcing event status tracking (for sourcing specialists and suppliers).
  • Template-based supplier invitations for participation in bidding.
  • Supplier bids comparison (that may include compliance scoring for a particular sourcing event and analysis of cost benefits).
  • Collaboration with department managers on supplier selection and nomination.
  • Quick form-based creation of purchase requisitions, RFxs, and purchase orders.
  • Automated approval workflow for purchase requisitions and purchase orders.
  • Supplier assignment to purchase orders with analytics-based recommendations on fitting suppliers.
  • Creation and management of preferred supplier lists (e.g., suppliers for particular products/services assigned by procurement specialists drawing on analytical insights).
  • Status tracking for purchase requisitions and purchase orders.
  • Automated three-way matching (purchase orders, order receipts, and supplier invoices are cross-compared to reveal inconsistencies if any).
  • Order execution tracking (for several tiers if required).
  • Communication tools to discuss orders with the suppliers.

Supplier risk management

  • Real-time supplier risk monitoring (reputational, financial, operational, and other risks assessed by AI based on private and public data sources + data from the questionnaires filled in by the suppliers).
  • Ongoing supplier compliance checks.
  • Automatic risk alerts (on any risk exposure).
  • Risk management (identified issues automatically pass through a pre-defined workflow, e.g., issue analysis, resolution suggestion, resolution review, and approval).
  • Risk exposure dashboard (with an overview of overall risk exposure level / per risk factors / per particular suppliers or supplier groups).

Supplier performance management

  • Supplier performance analytics.
  • Automatic alerts on deteriorating supplier performance.
  • Supplier comparison and segmentation (based on supplier performance and the level of engagement).
  • Configurable dashboards with a supplier activity overview.

Spend management

  • Real-time spend analysis.
  • Spend limits setup (per user/department).

Supplier contract management

  • Template-based creation of contracts for supply.
  • Automated contract approval workflow (collecting internal and supplier’s approvals).
  • Contract status tracking.
  • Alerts for contract start/renewal dates.
  • Contract versioning.

Supplier portal

  • Personal supplier dashboard with all related activities: assigned purchase orders, available e-tenders & e-auctions, contract reviews, etc. (available for authorized suppliers).
  • Automatic alerts for suppliers to update expiring data (accreditations, certifications).
  • Supplier catalog updating and editing.
  • Supplier forum with Q&A sections and shared file spaces (featuring R&D results, demand forecasts, etc.).
  • Instant messaging tools (for sourcing and procurement specialists to communicate with suppliers’ and sub-suppliers’ representatives).
  • Template-based and custom supplier surveys creation and individual or bulk sharing (e.g., to get supplier feedback on collaboration).

SRM database administration

  • Audit trail (to track who and when adds or changes any transactions in SRM software, e.g., places purchase orders).
  • Role-based user access settings.
  • Data backup and recovery.

Explore the Workflows in a SRM System

View potential suppliers for a deal

Create tenders to win the best offers from suppliers

Compare tender bids from different suppliers

Contact suppliers directly to speed up the discussion of business matters

Manage and share documents with suppliers

Create workflows for purchase requisition creation and approval

Monitor the performance of each individual supplier

Get the risk of dealing with suppliers intelligently estimated

Have total analytics at hand

Give suppliers full visibility into their deals with you too

Looking for Robust SRM Software?

ScienceSoft offers consulting and development services to help you implement custom or platform-based SRM software fitting your business specifics.

SRM software + ERP

– to transfer accurate supplier data and analytics (on supplier performance and risks) from SRM to ERP to leverage it at all levels of enterprise planning (operational and business planning).

SRM software + intranet

– to collaborate with business departments on supplier selection and procurement activities (e.g., other departments can submit their specific sourcing requirements and participate in the supplier approval process).

– to transfer notifications on received supplies (with the results of their quality inspection) from WMS to the involved users in SRM.

SRM software + inventory management software

– to transfer data on inventory levels from inventory management software to SRM for timely procurement.

High visibility into all levels of SRM processes

including identifying supplier compliance and performance risks and spotting opportunities for the optimization of sourcing and purchasing processes.

Powerful search engine

to find supplier information and supplier performance stats on a particular supplier, business unit or region, as well as easily navigate documents (contracts, invoices, etc.).

High level of automation

of daily routines of employees engaged in sourcing & procurement activities to increase their productivity (via automated workflows for purchase orders approval and issue management, templates library for contracts, supplier questionnaires, etc., automated three-way matching, etc.).

Key Financial Outcomes of SRM Software

  • Identification of the most cost-effective sourcing and purchasing opportunities.
  • Better pricing and delivery terms due to improved relationships with the suppliers and cooperation with sub-suppliers.
  • Reduced supply chain compliance and regulatory risks.
  • Sourcing strategy optimization and increased quality of the goods/services as a result.

Microsoft Dynamics 365 Supply Chain Management: Procurement & Sourcing Module

Best for

End-to-end procurement and sourcing for small and mid-sized companies.

Description

  • 360-degree overview of all supplier information.
  • Configurable setup of sourcing and purchasing workflows (e.g. supplier approval workflow for specific products/services.
  • RFQ supplier bids scoring and comparison.
  • Easy traceability of supplier-related documents (purchase requisitions, expense reports, etc.).
  • Vendor collaboration module to cooperate with the suppliers whose systems are not integrated with Dynamics 365 SCM (for processing purchase orders, invoices, etc.).
  • Seamless integration with Microsoft Power BI for self-service supplier analytics (to generate data-rich reports on dashboards related to collaboration with the suppliers).

Pricing

$180 per user/month.

Oracle Supply Chain Management: Procurement

Best for

Procurement for small and mid-sized companies.

Description

  • Supplier qualification management (with automated supplier scoring) and compliance monitoring.
  • Automated purchase requisition approval workflow and status tracking + automated creating of purchase orders from approved requisitions.
  • Supplier portal for simplified communication with suppliers.
  • Authoring of supply contracts: templates, clause libraries, built-in collaboration tools to draft compliant contracts.
  • Seamless integration with Oracle Financial Cloud to manage financial transactions.

Pricing

$400 per user/month.

SAP Ariba: Supplier Management

Best for

Supplier management and development for mid- and large-sized companies.

Description

  • Automated supplier onboarding and qualification process.
  • Supplier segmentation and performance management (with the help of scorecards, questionnaires filled out by the suppliers and KPIs monitoring).
  • Matrix-based supplier reports and analysis (based on category, location, and business unit).
  • Real-time risk exposure monitoring (reputational, compliance, financial, sustainability, and operational risks).
  • Self-service for suppliers to manage their own information.
  • Seamless integration with SAP Procurement, Strategic Sourcing, Buying, Spend Management.

Pricing

Please contact the vendor to get the pricing details.

When to Choose Custom SRM

A custom SRM solution for vendor relationship management will be a more cost-effective option than a platform-based solution when:

You need a highly customized solution complying with your specific requirements (e.g., AI-based analytics on supplier risks or purchase order execution tracking). Platform-based software can be easy to customize at the implementation stage (although costly), but adding modules and introducing new technologies after the implementation can become complex.

You have large teams involved in SRM processes (the cost of subscription for platform-based software depends on the number of users).

You need to integrate SRM with custom legacy systems (ERP, WMS, etc.), which may be complicated and costly in case of platform-based software.

You need a blockchain-based SRM solution for facilitated traceability of supplier contractual obligations, purchase order data, order shipment, relevant financial flows.

SRM Software Implementation

With 32-year experience in software development, ScienceSoft offers help with the implementation of an SRM solution to increase visibility into different levels of your supply chain and minimize supplier-related risks.

SRM software consulting

Our consultants:

  • Analyze your supply chain (participants, processes, regulatory requirements, etc.).
  • Elicit business and user needs for SRM software.
  • Define a suitable set of SRM software features.
  • Compare custom and platform-based SRM options and decide on an optimal solution.
  • Estimate ROI of SRM software.
  • For custom SRM software: design the software architecture for high performance, security and scalability.
  • For platform-based SRM software: prepare an implementation and configuration roadmap.
  • Prepare an integration plan (with ERP, WMS, etc.).
  • Deliver UX/UI mock-ups (optional).
  • Provide project cost & time estimates.

SRM software development

Our team offers:

  • Analysis of your supply chain processes and business needs related to SRM software.
  • SRM software conceptualization.
  • Custom SRM software development or configuration and customization of a platform-based SRM solution.
  • Mobile app development (if required).
  • Integration of SRM software with other systems (ERP, WMS, etc.).
  • User training.
  • After-launch support and SRM software evolution (on demand).

About ScienceSoft

ScienceSoft is an IT consulting and software development vendor headquartered in McKinney, TX. We provide SRM consulting and development services to help businesses make better sourcing and purchasing decisions, mitigate supplier performance and compliance risks and streamline communication with suppliers. Being ISO 9001 and ISO 27001-certified, we rely on a mature quality management system and guarantee cooperation with us does not pose any risks to our customers' data security. Check our offer on software consulting to learn more about our approach.