In our last post about SRM for SMEs, we explained the importance for small and medium enterprises to have an efficient supplier relationship management system.
Several solutions exist for SMEs to manage their suppliers. The most popular options are Installations-program (On-Premises) or web-based and/or cloud-based softwares (Software-as-a-Service or SaaS). With the rise of digitalization, and especially in the Industry sector (Industry 4.0) where digitalization is an important and forward-looking topic, a web-based SRM system can provide the best results for SMEs.When using a web-based SRM, data is saved on an external server and made available to their users through online (Here you can learn more about the benefits of using an SaaS tool.)
SaaS models propose a service-oriented software offering solutions to SMEs needs and challenges. When adapted to supplier management, a web-based SRM system can bring to SMEs the following benefits:
There is currently a high process systematization taking place in purchasing and quality management departments. Thanks to an automated handling of document requests and an active participation of suppliers, document management costs can easily be reduced for the buying company.
Most of the SRM systems offer an extensive supplier management environment, from contact and data management, to documentation and suppliers evaluation. A system gathering all data offers higher efficiency and makes the overview of all purchased products and suppliers significantly easier.
A central archive system offers the possibility to save important documents and the complete communication, ordered by suppliers, in one place accessible to every authorized user. Such a system offers the possibility to introduce in every company a paper-free documentation process by an efficient and sustainable use of the existing resources.
A quick access to all important supplier data anywhere at any time is necessary for all companies. By using a web-based SRM software, you can always have access to an up-to-date overview of your product and supplier related documents. This feature is especially adapted for audits and for setting the basis for your supplier evolution analysis.
Cross department collaboration:
The same system can be used by purchasing and quality management departments that would benefit both of them. Being used by several teams across the company, such a tool can be critical for sharing the most up-to-date data and information about the different products and suppliers.
A web-based SRM system can only be successful if both parties, company and supplier, have access to it. Suppliers can add data, update it and pro-actively upload documents for their customers. The direct connection between the suppliers and the buying companies increases the supplier engagement and increases benefits to the suppliers.
Most of the web-based SRM systems offer a quick and affordable setup. User-friendly, most of the systems do not require any training for employees or suppliers. All updates are directly made by the service provider, always offering the last version of their services and features. With no IT time and efforts to invest, all SMEs can use a web-based system.
Easy to budget:
With no extra cost for hardware, licences, setup or maintenance, web-based services are easy to budget. Most of the prices models are built around the number of suppliers or the number of features used in order to fit every budget.
With the simultaneous access of several companies to a cloud-based system, a B2B network is created where companies and suppliers can meet, improve and initiate new business partnerships. Such a network will allow them to quickly and easily exchange and share data, information and documents.
Even if some SMEs can still be skeptical regarding cloud software and supplier management, the awareness of SRM rises among small companies. A web-based SRM system where companies and their suppliers can work at eye-level strenghten long-term business partnerships and can benefits to both parties. If SMEs want to save time and money in their purchasing and quality management departments, the benefits of a web-based SRM system cannot be ignored and have to be studied.
You are not sure, if a web-based SRM system would make sense for your company? Try our ROI calculator and find out how much time and money ecratum, our web-based SRM tool, can save you.