How can you use BRM models to strengthen supplier relationships?

1 The House of BRM

The House of BRM is a model that illustrates the four levels of BRM maturity: tactical, operational, strategic, and business partner. The higher the level, the more value and trust you create with your suppliers. To use this model, you need to assess your current level of BRM maturity and identify the gaps and opportunities to move up. For example, if you're at the tactical level, you might focus on improving your communication and collaboration with your suppliers. If you're at the operational level, you might work on aligning your processes and objectives with your suppliers. If you're at the strategic level, you might explore new ways to innovate and co-create value with your suppliers. And if you're at the business partner level, you might leverage your suppliers' expertise and insights to shape your business strategy.

2 The BRM DNA

The BRM DNA is a model that describes the six core competencies of BRM: demand shaping, exploring, servicing, value harvesting, orchestrating, and influencing. These competencies help you manage the demand and supply of your supplier relationships, as well as the value creation and realization. To use this model, you need to develop and demonstrate these competencies in your interactions with your suppliers. For example, you can use demand shaping to understand and influence your business needs and priorities. You can use exploring to discover and assess new opportunities and solutions with your suppliers. You can use servicing to deliver and support the agreed outcomes and expectations with your suppliers. You can use value harvesting to monitor and optimize the value and benefits of your supplier relationships. You can use orchestrating to coordinate and integrate the resources and capabilities of your suppliers. And you can use influencing to persuade and motivate your suppliers and stakeholders to achieve your shared goals.

3 The BRM KPIs

The BRM KPIs are a set of metrics that help you evaluate and improve the effectiveness and efficiency of your BRM activities and outcomes. They include four categories: relationship quality, business value, operational excellence, and personal growth. To use this model, you need to define and track the relevant KPIs for your supplier relationships. For example, you can measure relationship quality by using surveys, feedback, or ratings to assess the satisfaction, trust, and loyalty of your suppliers. You can measure business value by using financial or non-financial indicators to quantify the impact and contribution of your supplier relationships. You can measure operational excellence by using process or performance metrics to gauge the quality and timeliness of your supplier deliverables. And you can measure personal growth by using self-assessment or peer-review tools to identify your strengths and areas for improvement as a BRM.

4 The BRM Life Cycle

The BRM Life Cycle is a model that outlines the four phases of a supplier relationship: identify, qualify, cultivate, and harvest. Each phase has a specific purpose, scope, and outcome. To use this model, you need to follow and adapt the steps and activities for each phase of your supplier relationship. For example, in the identify phase, you need to research and select potential suppliers that match your business needs and criteria. In the qualify phase, you need to negotiate and formalize the terms and conditions of your supplier agreement. In the cultivate phase, you need to build and maintain a strong and productive relationship with your supplier. And in the harvest phase, you need to review and recognize the value and results of your supplier relationship.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?