Supplier Relationship Management.

Functional Description

This module allows to evaluate the complex of data of each supplier (like demand for the products, demand deviation, time to deliver, prices, necessary inventory) and so each suppliers influence on turnover and ROInventory (return on inventory).

This evaluation is made by summary of optimal potential figures of each supplier.

When the suppliers` influence on optimal whole-firm potential figures is calculated, the action of subjective (occasional) factors and phenomena (managers decisions, transportation department decisions, excess stock, delivery time fluctuation in particular days etc.) is eliminated.

Having this evaluation separate policies for each supplier can be formulated, for example: to offer more attractive prices for more reliable and sooner delivery, to change payment order, to choose suppliers for further collaboration, to cancel customers, to stimulate them or to change their conditions.

Calculation of orders

Calculations are made as followed: SIMPLE-SRM evaluates how general whole-firm optimal figures would change by eliminating separate suppliers. For each variant, SIMPLE-SRM calculates optimal inventory investments - current and safety stock, optimal service levels and average margins. As a result, each supplier`s influence on potential warehouse sales, margins, necessary inventory, turnover and ROInventory is calculated.


SIMPLE-lp needs to be already installed.