Introduction

Supplier Relationship Management is the discipline of strategically planning for and managing
all interactions with third party organization that supply goods and services to an organization
in order to maximize the value of those interactions. In practice Supplier relationship
management entails creating closer more collaborative relationship with key supplier in order
to uncover and realize new value and reduce risk of failure.
One of the core industries in India and global markets largest industry is considered to be
automobile industry.
An Organization’s main & important role is played by the Supplier Relationship Management
(SRM) as the suppliers decide the cost, quality, reliability, product’s delivery, accessibility &
services
As SRM is the main concept of most of the enterprise resource, the complete performance of
the customers and the suppliers are based on the SRM.
 Importance of SRM
1. Reduced costs
2. Increased efficiency
3. Minimises price volatility
4. Consolidation of the supply chain
5. Outsourcing certain activities

Challenges faced by SRM in automobile Industry

1. Supplier’s Track Record
2. Understanding The Culture
3. Communication gap
4. Non-Transparency of Processes
5. Stressed Supplies
6. Supplier Training

Solution
1. Suppliers are not just vendors
2. Technology makes supplier relationship management simple
3. Realize that timely payments are crucial
4. Relationships should be strong and deep
5. Price is what you pay, value is what you get
6. Detailed agreements make supplier relationships easier
7. Evaluate the risks
 Conclusion
Supplier Relationship Management is the cornerstone of a company’s success.
Collaborative relationships require partners to contribute some of their managerial and
technical expertise to the relationship. This transfer of knowledge can be a valuable source of
ideas for improvement because both parties are required to prepare and organize operations in
which they are highly skilled to match the type of relationship.

we conclude that the buyer-supplier cooperation model of the former seems to be more
fruitful. When the buyers (automakers) become more financially strained, they must also rely
more heavily on suppliers for product development of systems and modules.

Automakers must accept that their external suppliers have competitors as their customers.
This strategy provides shorter time-to-market and economies of scale in R&D, product
development, and production. Overall, we conclude that all concerned evidence indicates the
importance of collaborative relationships between automakers and their suppliers.
study reveals that the knowledge of the suppliers is a must to rise from the problems faced in
Supplier Relationship Management, Suppliers cooperation, and Management to improve the
SRM performance.

Recommendations

1. The internal and external factors affect the Supplier management process.
2. The manager needs to cope with the factors by employing best possible measure to
get maximum output.
3. Arrange on time delivery payments, establish good relation with vendors, establish
award scheme for good performer vendors.
4. Enable vendors to boost their capabilities use new technology to increase production
capabilities to meet increasing market demand.
5. Automakers need to do a better job of working with suppliers to succeed in an
increasingly competitive market