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SRM

The dependence of fast growing construction industry on its suppliers and sub-contractors is increasing. The efficiency of the supply chain is vital to the overall efficiency of the organization.

Challenges

The key challenges include:

  • Providing a platform for domestic as well as international suppliers to approach the organization
  • Communication between suppliers and organizations involves many stakeholders and different communication channels, resulting in a loss of communication
  • Constant tracking and update of supplier information
  • Managing the documentation with suppliers
  • Need for transparency between organizations and their suppliers/ sub-contractors for a mature relationship
Solutions

To address the challenges, the supplier portal can be an effective tool that enables collaboration between suppliers, sub-contractors and transporters by providing customized, partner-specific access to buyers’ content, services and applications through the internet. It is a centralized portal which automates a large part of the procurement process. Some of the features are as follows:

  • The platform for suppliers willing to associate with the organization, where they can furnish their details.
  • The procurement process can be digitized, right from listing RFQ/ RFP on the portal to suppliers accessing the same and submitting their bids online. e-tendering can also take place using the supplier portal.
  • The finalized details along with prices, terms and conditions can be integrated with the organization’s ERP system for generating the purchase order/ work order and getting it authorized.
  • Communications such as shipping details by the supplier, goods receipt notes by the organization, taxation data and certificates can be exchanged electronically
  • The invoice processing can be automated by integrating the supplier portal with ERP
  • A complete digital record of the history of the supplier can be maintained which can be used for a more scientific vendor evaluation. Various MIS reports can also be made available for the organization as well as for the suppliers.
  • Security of data can be maintained by defining levels of access/ facilities that they want to provide to each class of suppliers.
Benefits For construction organization
  • The platform for strengthening vendor the base
  • Facilitate vendor development process
  • Reduced risk of delays in supply
  • Improved order-fill rates
  • Reduced inventory levels
  • Reduced downtime & overtime
  • Improved efficiency of the buyers and their support staff
 
Benefits for supplier
  • Faster order-to-cash cycle
  • Insights into own performance
  • Better capacity utilization
  • Increased inventory turns
  • Increased order-fill rates

 

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