Supplier relationship management

We are committed to fostering the right relationship with our suppliers; with key suppliers this will mean close co-operation, alignment to company objectives, regular two-way dialogue to improve processes, setting and raising standards throughout the entire supply chain and measuring / improving supplier performance. This is referred to as Supplier Relationship Management (SRM) and it is fundamental to our success.

image - SRM diagram

We select suppliers for inclusion in our SRM programme based on criteria such as expected financial turnover and criticality of supply. Selected suppliers will be notified post contract award. It is UU's hope and expectation that you will commit to active engagement in the SRM initiatives if selected, given the mutual benefits that can be derived from this type of interaction.

The ethos of SRM is that it should be a two-way process that will encourage and stimulate engagement between us and our suppliers to deliver mutual benefits for our respective companies, employees, customers and society at large.

Activities included within the SRM process will typically include:-

Understanding each other

  • Introductory meeting to gain understanding of the SRM philosophy and associated roles and responsibilities
  • Exchange of company overviews and introduction of key team members
  • Exchange of each other's contract governance processes

Making it easy to do business with each other

  • Joint input to programme and demand planning (forecasting) process
  • Joint review of commercial management and payment responsibilities
  • Investigation of future business opportunities
  • Pro-active resolution of issues such as risk reduction, health and safety etc

Raising the bar on performance (two-way)

  • Joint measurement of performance against agreed KPIs and SLAs
  • Active participation in performance assessment
  • Joint participation in performance reviews and feedback
  • Promotion and resourcing of performance improvement plans
  • Participation in supplier collaboration (such as Supplier Associations) to drive out efficiencies and improved ways of working
  • Fostering joint innovation

Celebrating success

  • Participation in supplier award schemes
  • United Utilities acting as referee / showcase for other clients
  • Opportunities to interact with United Utilities senior leaders
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