Supplier Relationship Management (SRM) in Absa Group Limited South Africa
Date
2012-11-14
Authors
Rajamany, Mervin
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Abstract
Organisations are looking to Supplier Relationship Management (SRM) to help reduce costs and increase revenue in order to maintain a competitive edge and remain relevant in difficult economic conditions.
Over the past few years, extensive research has been carried out concerning the critical role of Supplier Relationship Management (SRM) in organisations across the world. It has been found that many large organisations have implemented SRM successfully, and have achieved significant benefits by doing so.. SRM has really evolved over the past years and is playing a significant role in organisations with regard to the way in which companies manage their suppliers effectively in order to achieve better relationships and reduce costs or increase profit.
This research sought to assess how SRM was implemented in a financial industry context and to identify any benefits related to the implementation thereof. The research method used was a qualitative case study conducted in the interpretive paradigm. Data gathering consisted of semi-structured interviews with senior personnel involved in SRM within the case site. The research objective was broken down into two propositions derived from the literature review.
The case site, Absa Group Limited (Absa), provided an opportunity to examine a contemporary phenomenon in a real-life business context. The study found that Absa implemented SRM, but focussed more on risk management as per their policy, rather than deriving value from their key relationships. The research also identified gaps in the way in which Absa implemented SRM, which can be addressed by the recommendations made. The research also identified that Absa did not achieve the reported cost reduction benefits, as identified in the literature review. The study will be useful to other organisations with similar challenges. In addition, as the study provides insight into Absa, it will be useful to Absa executives and Supplier Relationship Managers (SRM‘s) to iOrganisations are looking to Supplier Relationship Management (SRM) to help reduce costs and increase revenue in order to maintain a competitive edge and remain relevant in difficult economic conditions.
Over the past few years, extensive research has been carried out concerning the critical role of Supplier Relationship Management (SRM) in organisations across the world. It has been found that many large organisations have implemented SRM successfully, and have achieved significant benefits by doing so.. SRM has really evolved over the past years and is playing a significant role in organisations with regard to the way in which companies manage their suppliers effectively in order to achieve better relationships and reduce costs or increase profit.
This research sought to assess how SRM was implemented in a financial industry context and to identify any benefits related to the implementation thereof. The research method used was a qualitative case study conducted in the interpretive paradigm. Data gathering consisted of semi-structured interviews with senior personnel involved in SRM within the case site. The research objective was broken down into two propositions derived from the literature review.
The case site, Absa Group Limited (Absa), provided an opportunity to examine a contemporary phenomenon in a real-life business context. The study found that Absa implemented SRM, but focussed more on risk management as per their policy, rather than deriving value from their key relationships. The research also identified gaps in the way in which Absa implemented SRM, which can be addressed by the recommendations made. The research also identified that Absa did not achieve the reported cost reduction benefits, as identified in the literature review. The study will be useful to other organisations with similar challenges. In addition, as the study provides insight into Absa, it will be useful to Absa executives and Supplier Relationship Managers (SRM‘s) to iOrganisations are looking to Supplier Relationship Management (SRM) to help reduce costs and increase revenue in order to maintain a competitive edge and remain relevant in difficult economic conditions.
Over the past few years, extensive research has been carried out concerning the critical role of Supplier Relationship Management (SRM) in organisations across the world. It has been found that many large organisations have implemented SRM successfully, and have achieved significant benefits by doing so.. SRM has really evolved over the past years and is playing a significant role in organisations with regard to the way in which companies manage their suppliers effectively in order to achieve better relationships and reduce costs or increase profit.
This research sought to assess how SRM was implemented in a financial industry context and to identify any benefits related to the implementation thereof. The research method used was a qualitative case study conducted in the interpretive paradigm. Data gathering consisted of semi-structured interviews with senior personnel involved in SRM within the case site. The research objective was broken down into two propositions derived from the literature review.
The case site, Absa Group Limited (Absa), provided an opportunity to examine a contemporary phenomenon in a real-life business context. The study found that Absa implemented SRM, but focussed more on risk management as per their policy, rather than deriving value from their key relationships. The research also identified gaps in the way in which Absa implemented SRM, which can be addressed by the recommendations made. The research also identified that Absa did not achieve the reported cost reduction benefits, as identified in the literature review. The study will be useful to other organisations with similar challenges. In addition, as the study provides insight into Absa, it will be useful to Absa executives and Supplier Relationship Managers (SRM‘s) to implement measures which may aid in addressing gaps in order to ensure that SRM is implemented effectively so that Absa can reap the desired benefits.
Description
MBA thesis - WBS
Keywords
Supplier relationship management