The SRM you receive depends on Risk-Value position- are you a bottleneck or leverage supplier?

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Treating suppliers with respect is an organizational culture thing to some extent but it largely  depends on what type of risk-value you bring to the table. For example are you a bottleneck supplier or a leverage supplier?

For example, if you are a supplier of a bottleneck item to a customer or segment of customers you can be sure that these customers would like to keep some stock on hand and would not negotiate too much for price but would be concerned about reliable quality. This bottleneck item could be a valve in a food plant where if it malfunctioned  the entire production line could be shut down. The funny part is that the same valve could be a leverage item in an  upstream equipment making plant where you would have to go through the hoops of bids,negotiations and delayed payments with strong global competition. Naturally in the second case your billing would be large but the SRM from the buyers side will involve much tougher negotiations. In the former case, you could expect much lesser bill (after all the valve is a critical spare and not more leisurely OEM). In other words, the SRM you expect from each customer segment would depend a lot on where the customer places your category of goods/services.

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