Dedham, Mass.--ARC Advisory Group has introduced a new solution designed to help technology users measure and manage their supplier service relationships. While typical supplier relationship management (SRM) offerings focus on parts suppliers or supply chain management, ARC’s Supplier Performance and Relationship Management (SPRM) solution focuses on supplier service performance associated with complex technology solutions such as advanced controls systems, production management systems, and enterprise asset management systems, said the company in a release.
“We see supplier performance and relationship management as a key focus area for industry leaders,” says Andy Chatha, President of ARC Advisory Group. “However, we have also seen that the typical programs and processes are inconsistently applied and their results are highly subjective. ARC, with our vast industry experience and strong relationships with both the technology user and supplier communities, is well-positioned to deliver a solution in this area.”
The total lifecycle costs for these types of strategic, industrial systems are typically much larger than the initial acquisition and installation costs, said ARC Advisory Group, whose research indicates that the difference can be over four fold.
“For this reason, it is important for technology users to focus on managing and improving supplier performance over the entire lifecycle of a strategic technology solution. A well-managed relationship will lead to better system performance, higher reliability, managed service costs, and improved overall competitiveness. ARC’s SPRM solution delivers the proper service relationship Key Performance Indicators (KPIs), a rigorous and proven data collection and measurement process, and the final development of a Supplier Performance Scorecard report to facilitate a year-over-year analysis to drive continuous improvement,” said the company.