Training Course: Supplier Management and Development: Risk and SRM Tools

Supplier management and development is the practice of assessing suppliers, measuring their performance, reducing the risks they carry and helping the most important ones improve, with Supplier Relationship Management (SRM) tools supporting each step. This five-day course is for mid-level purchasing, category and supplier quality professionals, and its final deliverable is a supplier management plan for one strategic supplier covering segmentation, development actions and risk responses.

Introduction

The course rests on three frameworks. The Kraljic Portfolio Matrix is a two-axis model that sorts purchases by profit impact and supply risk, and it guides how suppliers are categorised. ISO 31000 is the international standard giving risk management guidelines, and it sets the steps used to identify, analyse and treat supplier risk. The supplier scorecard is a weighted set of key performance indicators that turns delivery, quality and responsiveness into comparable figures. The level is practitioner, and each of the four areas is treated in depth through case studies from manufacturing, healthcare and facilities services.

Course Objectives

• Define the scope of supplier management and development and distinguish SRM from transactional purchasing when deciding where relationship effort is spent
• Apply the Kraljic Portfolio Matrix to categorise a supplier base and select the assessment method each segment warrants
• Select scorecard KPIs for quality, cost, reliability and innovation and interpret the results in performance review meetings
• Compare continuous improvement with corrective action and justify which response a given scorecard result calls for
• Interpret supplier risks through the ISO 31000 process and compare risk matrices with risk scoring systems when ranking exposure
• Justify the choice of dedicated SRM software or ERP supplier modules for holding performance, development and risk data

Target Audience

• Purchasing and category specialists managing a supplier portfolio, who must decide which suppliers receive relationship effort and which stay transactional
• Supplier quality and performance professionals running audits and scorecards, who must judge when a result calls for development rather than corrective action
• Contract and vendor managers overseeing agreements, who must choose which contractual terms and contingencies mitigate a given supplier risk
• Supply chain and operations coordinators relying on supplier deliveries, who must assess which disruptions need an escalation plan
• Procurement systems and analytics staff maintaining supplier data, who must select the tools and measures that support SRM decisions

Course Outline

Day 1: Defining SRM and Its Frameworks

• SRM vs Transactional Purchasing: Scope and Purpose of Each Approach to Suppliers
• Evolution of SRM: From Price-Led Buying to Strategic Supplier Partnerships
• Core SRM Components: Communication, Collaboration and Performance Management with Suppliers
• SRM Frameworks and Models: How Portfolio and Tiered Approaches Allocate Effort
• Cross-Sector SRM Cases: Implementation Lessons from Manufacturing and Healthcare Buyers

Day 2: Assessing and Categorising Suppliers

• Supplier Assessment Criteria: Weighing Quality, Cost, Reliability and Innovation Capability
• Kraljic Portfolio Matrix vs Spend Segmentation: Placing Suppliers by Strategic Importance
• Surveys vs Site Audits: Choosing a Supplier Assessment Method for Each Segment
• Supplier Scorecards and KPIs: Measuring Delivery, Quality and Responsiveness Consistently
• Performance Metrics Baseline: Recording Current Supplier Results Before Improvement Work Begins

Day 3: Developing Suppliers and Improving Performance

• Supplier Training vs Joint Improvement Initiatives: Choosing a Supplier Development Route
• Supplier Incentives: Linking Volume, Contract Length and Recognition to Performance
• Long-Term Relationship Foundations: Trust, Transparency and Mutual Goals with Suppliers
• Continuous Improvement vs Corrective Action: Responding Proportionately to Scorecard Results
• Supplier Performance Review Meetings: Agenda, Evidence and Follow-Up Actions Explained

Day 4: Supplier Risk and Crisis Management

• Operational vs Financial vs Compliance Risk: Classifying the Exposure Each Supplier Creates
• ISO 31000 Risk Process: Identifying, Analysing and Evaluating Risks in Supplier Relationships
• Risk Matrices vs Risk Scoring Systems: Ranking Supplier Risks on a Consistent Basis
• Mitigation Options: Diversification, Contractual Agreements and Contingency Planning Compared
• Supplier Crisis Response: Escalation Plans and Communication During a Supply Disruption

Day 5: Applying SRM Tools to a Supplier Management Plan

• SRM Software vs ERP Supplier Modules: Selecting Tools for Scorecards and Risk Registers
• SRM System Implementation: Steps, Challenges and Integration with ERP, CRM and SCM Systems
• Supplier Data Analytics: Applying Scorecard and Risk Data to Segmentation Decisions
• AI and Blockchain in SRM: Current Uses and Limits for Supplier Insight
• Supplier Management Plan: Completing Segmentation, Development Actions and Risk Responses

Skills You Will Gain

• Supplier Segmentation
• Supplier Assessment Design
• Scorecard and KPI Design
• Supplier Development Planning
• Performance Review Facilitation
• Supplier Risk Assessment
• Contingency Planning
• SRM System Selection

Why Attend This Course

• From judging suppliers on price and recent complaints to assessing them against weighted quality, cost, reliability and innovation criteria
• From meeting every late delivery with the same escalation to choosing between development support, incentives and corrective action
• From discovering supplier risks after a disruption to ranking them in advance with contingencies ready
• From scattered supplier records to a supplier management plan for one strategic supplier, built on the tools already in place

Conclusion

Managing and developing suppliers means deciding how much attention each supplier deserves, then using evidence to raise its contribution while containing what could go wrong. The course clarifies three distinctions: strategic relationships versus transactional purchasing, development support versus corrective action, and risk matrices versus risk scoring systems. It suits practitioners who already handle suppliers daily and need an extended treatment of assessment, development, risk and SRM technology.

Course FAQs

What is supplier management and development?

Supplier management and development covers selecting, measuring and improving suppliers so they meet organisational needs. It combines assessment and categorisation, scorecard-based performance management, joint improvement with key suppliers, risk control and supporting software.

What is the difference between corrective action and supplier development in supplier management?

Corrective action fixes a specific failure, such as a defect or a late shipment, and closes once the cause is removed. Supplier development is a planned investment of training, joint projects or incentives that raises a supplier's capability over a longer period.

Which standard does supplier management and development training follow for supplier risk?

Supplier risk is handled with the ISO 31000 process of identifying, analysing, evaluating and treating risk. Categorisation follows the Kraljic Portfolio Matrix, and performance is tracked through weighted supplier scorecards.

Is supplier management and development training right for a supplier quality engineer?

Yes, where the engineer runs audits or scorecards. Sessions on assessment methods, corrective action versus development and review meetings match that role, while the risk and SRM software sessions add the commercial and systems view the role often lacks.

What do delegates produce on a supplier management and development course?

Delegates produce a supplier management plan for one strategic supplier, containing its segment placement, scorecard KPIs, development actions, ranked risks with mitigation and contingency steps, and the SRM tools chosen to track them.