At SNCF, we’re changing our relationships with suppliers in fundamental ways. Since 2018 we’ve been replacing our traditional supplier relationship management (SRM) system with supplier value management (SVM).
We’re making this change to achieve a number of goals:
- identify and work with promising suppliers to help them improve their skills
- manage and energize our supplier panel and qualification process
- use e-sourcing to select the best offers
- track service delivery and quality
- involve the full range of players—suppliers, customers, buyers, and specifiers
- optimize management of risks and opportunities, especially for innovation
Managing the supplier relationship
Supplier relationship management (SRM) consists primarily of two types of periodic (usually annual) supplier review.
These reviews focus on strategic and key suppliers, examining current activity and short-term outlook and analysing the supplier’s performance on quality, cost, delivery and service (QCDS) metrics. The goal is to reach short- and medium-term operational and strategic decisions on key suppliers*.
These reviews focus on strategic suppliers, emphasizing the main points from the performance review and detailing each player’s strategic vision and areas of cooperation. The goal is to reach medium- and long-term decisions linked to action plans.
Contract reviews—like steering committees for labour contracts—enable us to track the performance level expected of each supplier in three categories: strategic, key and recurring*.
Our centralized database is updated in real time, keeping everyone in the picture and delivering supplier information we can count on—both quantitatively and qualitatively.
The e@si platform makes it easier for us to stay in touch with our suppliers and cultivate partnerships. We build these relationships on performance and progress plans, carrying out regular assessments and tracking action plans.
We communicate with our suppliers through a variety of channels: the Préviweb component of the SNCF.com site (the work calendar for our Group and Network Procurement Divisions), dedicated newsletters, supplier conventions and more.
We also work hard to ensure that information from our suppliers reaches the right people at SNCF, using mediation, 360° evaluations of our partnerships and other resources.
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* Strategic suppliers work in high-stakes areas—finance, product criticality, strategy and Group issues—and we need to build close, high-priority relationships with them.
Key suppliers work in areas that have low financial stakes but are critical to our products, strategy or Group issues, and we need to build high-priority relationships with them.
Recurring suppliers have signed contracts with SNCF, are listed in our active supplier panel and do more than €100,000 in business with us.