Adaptability in SRM: 5 Traits to Adapt in SRM

Adaptability in supplier relationship management is essential for supply chain navigation. It’s a way to travel a business field where supplier needs and performance rapidly change. It’s also where unexpected market conditions arise and challenge procurement managers.

Luckily, this article will explore adaptability in SRM. It explains how companies can efficiently respond while continuously developing ways to improve.

I’ll use my years of experience as a procurement manager for major companies. These companies include Ahold Delhaize and Friesland Campina.

This way, I can help you as I share practical insights for adaptability. It can help you strengthen your procurement teams and foster better supplier interactions.

Embracing this approach can help you seize better opportunities. All of these while facing procurement challenges head-on. 

Also, this article dives into the core adaptability traits. Of course, we’ll include a real-life example from Microsoft. This way we can effectively visualize how an adaptable mindset can bring success. 

What is Adaptability in SRM?

Adaptability in SRM is the ability to adjust to changing market conditions. It includes the volatility of business needs and supplier performance. Adaptability in supplier relationship management is just like any other. 

It’s a trait that the company must possess to push against a dynamic landscape. The supply environment is often unpredictable. Thus, companies must remain alert and flexible in their supplier relationship management approach. 

Procurement teams must recognize these shifts and create the necessary procurement strategy. An adaptable SRM framework enables companies to respond efficiently to supply chain disruptions. Moreover, it provides room for continuous development while encouraging better communication. 

This way, companies can refine processes with their suppliers. The process allows them to identify better opportunities and more innovation. 

Adaptability in SRM is essential for a robust and resilient supply chain. In my years of procurement management, this trait is a key player. It enables procurement teams to respond to external pressure. 

It also strengthens the supply chain without constant supervision. The emphasis on the adaptive quality of procurement teams puts trust in them. You can say that adaptability is a way of maintaining quality while knowing your team can do it.

With 200+ procurement teams trained under me, I say adaptability is indispensable. I’ve recognized through these teams how adaptability can push them forward. 

Some teams looked like they were about to lose. However, through consistency and a drive for learning, they pushed through. 

Why is Adaptability Important in SRM?

Adaptability in SRM is crucial because it establishes resiliency and competence for businesses. Supply chain disruptions are often elusive and unpredictable. This concern happens due to various problems.

It includes economic fluctuations and even geopolitical circumstances. Such cases affect supplier performance and even technological shifting. Adaptability in SRM enables you to recognize these concerns and pursue continuity. It prevents delays and interruptions by prepping your team with the needed action.

It’s worth noting how adaptability in SRM also enhances flexibility and collaboration. Your business and suppliers can explore challenges and innovation together. This joint effort can result in improved pricing and better quality. It can also help with your logistics, smoothening the supply chain process.

Incorporating this adaptive approach can push more companies forward toward sustainability practices. Doing so raises your company’s reputation to a higher scale. It can even reach global standards, which is more than beneficial for your branding.

The strategy behind adaptability in SRM lies in its advantage. Companies can respond quicker and more efficiently against sudden changes. Compared to those without adaptive techniques, they are in a more competitive position.

Adaptability is crucial indeed since it allows companies to thrive in volatile environments. Recognizing the agility and convenience it can provide, supply chains can be better.

Traits for Adaptability in SRM

Several traits are essential to thrive more in adaptability in SRM. Knowing how these key traits work with an adaptive force is more than welcome. Procurement professionals can benefit and improve their supply chains with these traits. Below are these traits to incorporate into your adaptability in SRM:

1. Flexibility

This trait enables your team to adjust plans properly. It acts as a response to unexpected circumstances and issues. 

Flexibility helps businesses maintain continuity and avoid other disruptions. Ultimately, it’s a trait that combats fluctuations and values initiative!

For this trait, Toyota’s JIT or Just-in-Time System is the perfect example. It’s a manufacturing strategy requiring great amounts of flexibility. It was proven during the unforgettable 2011 Japan tsunami-earthquake disaster. Toyota faced the challenge of a severely disrupted supply chain. 

However, through an efficient supply chain management and procurement team, they pushed through. The team adapted through alternative sourcing and production adjustment. They also shifted focus and effort through unaffected production plants. It helped them avoid such delays.

2. Problem-Solving

Adaptability requires quick wit in identifying concerns. Procurement teams must be honed in the practice of finding practical solutions efficiently. 

Such traits benefit both the company and suppliers. It’s especially valuable in scenarios where sudden shortages or unseen events occur.

For problem-solving, we can take a look at Apple’s quick response. It was in 2020, at the height of the COVID-19 pandemic, that they faced such a challenge. Global supply chain disruptions were rampant but Apple’s procurement team was ready. 

The team used top-notch negotiation skills to improve and diversify their sourcing channels. Moreover, they enhanced their negotiation by consistently training their team’s problem-solving. All of it while incorporating these practices.

3. Open-mindedness

Adaptability in SRM requires consistent curiosity and openness to changes. It’s a trait that works in synergy with innovative responses. It’s also a way of working things around when it seems that there are no solutions. 

Possessing this trait allows your teams to capitalize on a situation. It pushes them to innovate and embrace varying perspectives. It allows them to work closely and ultimately improve processes.

For open-mindedness, we can depend on Unilever’s sourcing example. Their procurement team exemplifies sustainability as the prime sourcing initiative. They collaborate with farmers and suppliers closely to recognize the best farming practices. 

Moreover, they further emphasize development through an initiative of new and revolutionary practices. An example is soil health improvement and biodiversity.

4. Resiliency

This trait enables adaptability in SRM to be sturdy and robust. It’s the ability to work against setbacks and changes without losing the goal. 

It’s essential to be resilient, as losing focus may put the company in dire circumstances. It’s a trait that, I can say, will keep you on track of your procurement goals.

For resiliency, check out Walmart’s efficient hurricane response. Walmart’s procurement planning allowed it to adapt to Hurricane Katrina’s effect. This happened during the 2005’s but still, it shows how Walmart is standing strong today. 

Their resiliency planning, by overcoming logistical concerns, shows their peak performance. It exemplifies how they can move around even amidst critical moments and crises.

5. Transparent Commmunication

This trait enables adaptable procurement managers to engage better. Suppliers often favor great communicators, ensuring clear goals and objectives. 

Communicators are adaptable to the voice of suppliers, especially when it concerns challenges. It’s a way to establish joint effort and do better in the supply chain. 

Here, Procter & Gamble’s consistent engagement and transparent communication is key. P&G proactively keeps in touch with its suppliers. They provide them with all the necessary details, making transactions smoother. 

Moreover, they also maintain forecasting and production plans within their communication. It’s a healthy and helpful way for P&G and its partners to be consistent. Doing this helped them resolve concerns and face their challenges head-on. 

How Microsoft and Technology Showed Adaptability

In the early 2000s, Microsoft was the rise of mobile technology. Traditional desktops are facing challenges in the form of smartphones. Since desktops are major players for Microsoft, this becomes their concern.

This competition becomes a problem for the company’s long-term success. Microsoft, through Satya Nadella, demonstrates adaptability through focus shifting. The leader thought of maximizing cloud computing and services. 

This new direction enabled them to move away from relying on their main product: Windows. It’s a challenging shift as the change comes from a fundamental perspective.

It’s something within their mindset and business strategy. Instead of simply weathering the storm, Microsoft adapts to the changing business field. 

They used their technical expertise and implement a cloud-based solution. This technology matches the needs of the upcoming modernization. It allowed them to position themselves in the technological ecosystem. 

The craftiness of Microsoft in this scenario proves its adaptability. Moreover, it shows how widening perspectives can drive innovation amidst continuous change.

Conclusion

In conclusion, adaptability in SRM is a proactive aspect of the supply chain. It strengthens a company’s position amidst the continuously changing environment. It fosters flexibility and problem-solving abilities.

It’s also a way to enhance communication and collaboration between suppliers. Adaptability is a way of ensuring both parties remain responsive and resilient. Moreover, it opens innovation and improvement through the aspects above.

From my years as a procurement manager, I have seen how adaptability is indispensable. It’s an approach that builds trust. 

We have also included a real-life example from Microsoft. The tech giant shows how adaptability is a crucial aspect that can boost the supply lines. By intercepting the changes happening in the business environment, they remained strong.

They were able to capitalize on the opportunity presented by the smartphone scenario. It’s an agile and open technique that allowed them to transform along with the industry.

Ultimately, adaptability in SRM enables a company to maintain a competitive edge. Cultivate this quality to ensure continuous growth and procurement success.