Supplier management needs more than an SRM system

Organisation before system configuration

State of Flux’s 2026 SRM study examines how supplier management is embedded in the operating model, governance and people’s behaviour. Ivalua identifies fragmented data, inconsistent metrics and uneven governance as obstacles. Gartner also points to suppliers’ reluctance and scepticism about closer collaboration.

Business requirements should therefore come from actual procurement practice: how are suppliers qualified? Who evaluates them? When are issues escalated? If processes are only defined during system configuration, the solution may fail to reflect how work is actually done.

From actual processes to the system

1. Assess current workflowsQualification, evaluation and escalation as they work today
2. Derive requirementsBusiness requirements based on those workflows
3. Configure the systemMaster data, evaluations, risks and contracts
4. Testing and UATWith future users and realistic scenarios
5. Go-liveClose gaps before go-live, not afterwards

Segment suppliers deliberately

Clear segmentation helps companies focus their effort. Not every supplier needs annual meetings and scorecards. Identifying strategically important partners allows collaboration to be strengthened where it matters most.

Effort by supplier segment

Strategic partnersAnnual meetings, scorecards, quarterly business reviews and supplier days

Key suppliersRegular evaluation and discussions as needed

Other suppliersMaster data, contracts and risks in the system, without dedicated meeting formats

Test with realistic scenarios

Testing and User Acceptance Tests show whether processes and the system fit together. They should involve future users and realistic scenarios so that gaps become visible before go-live.

Make collaboration consistent

Supplier management also needs regular communication formats. Gartner mentions quarterly business reviews, supplier days and satisfaction surveys. The system provides the data; the responsible procurement professionals shape the collaboration.

Sources

1. State of Flux, 2026 Global SRM Research Survey: https://stateofflux.co.uk/srmresearch26
2. Ivalua, Ultimate Guide to Supplier Relationship Management 2026: https://www.ivalua.com/blog/supplier-relationship-management/
3. Gartner, Supplier Relationship Management: A Complete Guide: https://www.gartner.com/en/supply-chain/topics/supplier-relationship-management