Supplier Relationship Management – Standard Operating Procedure
1) Purpose
To establish guidelines for managing relationships with suppliers to ensure consistent quality, reliability, and mutual benefit in the procurement process within the pharmaceutical purchase department.
2) Scope
This SOP applies to all activities related to maintaining and improving relationships with suppliers.
3) Responsibilities
Procurement Manager: Responsible for overseeing supplier relationship management activities.
Supplier Relationship Management (SRM) Team: Responsible for implementing and maintaining effective supplier relationship strategies.
Suppliers: Responsible for adhering to agreed-upon terms and maintaining open communication.
4) Procedure
4.1) Establishing Supplier Relationships:
4.1.1) Identify key suppliers critical to the procurement process and overall business objectives.
4.1.2) Develop a comprehensive understanding of each supplier’s business, capabilities, and objectives.
4.2) Communication:
4.2.1) Establish clear and consistent communication channels with suppliers.
4.2.2) Schedule regular meetings to discuss performance, address issues, and plan future activities.
4.3) Performance Monitoring:
4.3.1) Develop key performance indicators (KPIs) to measure supplier performance.
4.3.2) Conduct regular performance reviews based on agreed-upon metrics and provide feedback to suppliers.
4.4) Collaboration and Development:
4.4.1) Work collaboratively with suppliers to identify areas for improvement and innovation.
4.5) Issue Resolution:
4.5.1) Develop a structured process for resolving disputes and issues with suppliers.
4.5.2) Ensure timely and effective resolution of issues to maintain positive relationships.
4.6) Risk Management:
4.6.1) Identify potential risks in the supplier relationship and develop mitigation strategies.
4.6.2) Regularly review and update risk management plans based on changes in the supplier landscape.
4.7) Documentation and Record Keeping:
4.7.1) Maintain detailed records of all supplier interactions, performance reviews, and development activities.
4.7.2) Ensure documentation is complete, accurate, and readily available for audits and future reference.
4.8) Continuous Improvement:
4.8.1) Regularly review supplier relationship management practices and identify opportunities for improvement.
4.8.2) Implement changes to enhance the effectiveness of supplier relationship management strategies.
5) Abbreviations, if any
- SRM: Supplier Relationship Management
- KPI: Key Performance Indicator
6) Documents, if any
- Supplier Performance Reports
- Meeting Minutes
- Communication Records
- Development Plans
- Risk Management Plans
7) Reference, if any
Regulatory Guidelines: FDA CFR Part 211, ISO 9001:2015
Industry Standards: Best practices in supplier relationship management
8) SOP Version
Version 1.0
