Samit Shankar: How to Utilise SRM as a Competitive Advantage

In a world where supply chain disruptions can make or break companies overnight, supplier relationship management (SRM) has evolved from a tactical element of the procurement function to strategic imperative. 

Leading the transformation is Samit Shankar, former Director at EY and now a Consultant at Arinox AI, whose 15-year journey in supply chain optimisation has positioned him at the forefront of SRM innovation.

From hospitality to supply chain excellence

Samit's career trajectory reads like a masterclass in diversification and strategic focus. Beginning at the front desk of India's first six-star hotel, his early exposure to customer delight and operational excellence laid the foundation for his later success in supply chain management.

"It's been quite a ride,” Samit reflects. “I often joke that my career has been a bit like a tasting menu – lots of different flavours and experiences.”

His journey took him through software development during the Y2K era, product management and technology operations, before finding his true calling in supply chain.

For the past decade, Samit has been laser-focused on SRM and procure-to-pay process transformation, working with global organisations including Allianz, GE Capital, JPMorgan, Diageo and EY. His experience spans leading global teams and uncovering what he terms "buried treasures" – those often-overlooked opportunities that can deliver significant value.

Currently operating as an independent consultant, which sees him engaging with promising start-ups in the agentic AI space, Samit brings a unique perspective on how technology can redefine business operations.

The strategic imperative of SRM

The question of SRM's importance in today's business climate isn't whether it's needed, but rather whether organisations can afford to operate without it. 

Samit's perspective is unequivocal: the importance of effective SRM cannot be overstated. 

He explains: "In today's world, where things can change on a dime – whether it's geopolitical shifts, supply chain disruptions, or economic uncertainty – effective supplier relationship management isn't just a 'nice-to-have’; it's a fundamental pillar for survival and staying ahead of the competition.”

Samit identifies three core capabilities that make SRM indispensable: risk mitigation, leakage prevention and building robust relationships. On risk management, SRM functions as an early warning system, constantly monitoring suppliers' financial stability, data security practices and adherence to ethical and environmental standards.

The leakage prevention aspect involves forensic examination of contracts and invoices to ensure organisations receive what they're paying for: "Think about those volume discounts you negotiated – are they being applied correctly? Are there duplicate payments creeping in? Is consumption at par with entitlement? SRM is the detective that uncovers these hidden costs.”

But perhaps most crucial is the relationship dimension. Samit emphasises that SRM isn't merely about avoiding problems; it's about creating tangible value and identifying improvement opportunities. 

He cites real-world examples where SRM initiatives have delivered substantial savings: analysing software licence usage patterns have led to US$10 million in savings through licence reclassification, while implementing smart auto-scaling solutions for cloud capacity ensured companies only paid for actual usage rather than anticipated growth.

Implementing SRM: Lessons from the trenches

Having built SRM frameworks and implemented contract lifecycle management (CLM) systems throughout his career, Samit has encountered consistent challenges that organisations must navigate when introducing strategic supplier relationship approaches.

The first challenge involves establishing the fundamental 'why' behind SRM – essentially selling the concept internally. 

"You need to clearly articulate the value SRM brings to the organisation and, crucially, how it directly benefits each stakeholder,” Samit continues. “If people don't understand what's in it for them, it's an uphill battle from the start.”

The second hurdle centres on CLM tool adoption and consistent usage.

Samit uses a compelling analogy: "You can have the fanciest system in the world, but if it's not set up in a way that makes life easier for the people who have to use it every day, interest quickly fades and the ROI evaporates. It's like having a state-of-the-art kitchen that no one wants to cook in."

His solution-based approach emphasises internal evangelism and clear communication before system implementation. This involves building the SRM framework first, defining which suppliers require strategic engagement based on criticality and risk factors, and creating comprehensive playbooks outlining roles, responsibilities and service level agreements.

For CLM implementation, Samit advocates meticulous planning and proactive change management. 

Reflecting on past experience, he says: “Long before we even signed on the dotted line with a vendor, we engaged all the key stakeholders. The goal was to generate genuine enthusiasm for the new tool.”

Success requires communicating both micro-level benefits for individual users and macro-level organisational advantages.

Measuring SRM Value: Beyond cost savings

Quantifying SRM impact presents unique challenges, but Samit advocates for a structured approach that extends far beyond traditional cost-cutting metrics. 

A mature SRM programme should function as a significant value driver rather than merely a cost centre.

"To really measure that value, you need a structured approach, starting with crystal-clear goals for your SRM initiatives," Samit notes. 

The measurement framework encompasses cost savings, risk reduction, efficiency gains and innovation metrics, with consistent monitoring and quantification of both financial and intangible benefits.

Samit's experience suggests a well-optimised SRM function should deliver a tenfold ROI annually. This value creation manifests through various channels: leakage prevention typically identifies errors in approximately 2% of invoices, while overcapacity identification can yield substantial savings. Samit cites a 50% reduction in cloud storage costs through dynamic capacity adjustment.

Price benchmarking, material substitution and comprehensive risk management contribute additional value streams. 

Samit adds: "By analysing spend patterns, payment cycles, rate card deviations and even identifying fragmented spending on similar services, SRM acts as an internal consultant, helping the business and procurement make smarter decisions and uncover those 'buried bodies’.”

Strategic partnership in action

Samit's approach to strengthening strategic supplier relationships is best demonstrated by his work with an AI-powered computer vision analytics start-up focused on the consumer packaged goods industry. 

This case study demonstrates how SRM can transform vendor relationships into genuine strategic partnerships.

The challenge lay in bridging the gap between innovative technology and specific business outcomes. While the start-up possessed excellent technology, alignment with retail execution goals required refinement.

Samit's SRM team organised comprehensive workshops bringing together start-up representatives, business stakeholders, technology experts and project management teams. 

"These weren't just surface-level meetings,” he reveals. “We really dug deep, creating a collaborative space to iron out any gaps in understanding – both in terms of what the business was trying to achieve and what the AI technology was truly capable of delivering.”

The collaborative approach enabled joint refinement of the product roadmap, ensuring direct alignment with challenges in retail execution, shelf strategy and actionable insights generation. The results were transformative: a threefold increase in volume growth in implementation areas and elevation of the start-up from vendor to strategic partner status.

"The mutual value was clear: for us, it was superior retail execution and significant sales growth,” says Samit. “For the startup, it was the opportunity to deeply integrate their technology into a major player in the CPG space, gain invaluable real-world insights and solidify their position as a key strategic partner.”

The future of SRM

Looking ahead, Samit envisions SRM evolution characterised by technological enablement, sustainability integration and strategic value creation. 

Advanced AI and machine learning tools will provide deeper supplier performance insights, predict risks with greater accuracy and automate routine SRM tasks.

"Imagine AI sifting through vast amounts of data to identify potential disruptions or opportunities for collaboration that humans might miss," Samit suggests.

He elaborates with the following assertions: 

• Advanced analytics will enable holistic supplier ecosystem views, identify hidden dependencies and support proactive rather than reactive decision-making.
• Collaboration platforms will become more integrated and user-friendly, functioning as digital hubs for contract management, performance tracking, innovation collaboration and real-time issue resolution. 
• Sustainability and ethical sourcing will transition from peripheral considerations to core SRM strategy components.
• Risk resilience will gain prominence following recent global supply chain vulnerabilities. 

"Future SRM strategies will focus on building more agile and diversified supplier networks, with robust contingency plans in place to weather any storms," Samit goes on. 

Perhaps most significantly, he believes the focus will shift from cost savings as the primary driver to holistic value creation encompassing innovation, quality improvements, speed to market and collaborative relationships driving mutual benefit.

Samit concludes: "The future of SRM is about leveraging technology to build more resilient, sustainable and value-driven partnerships with strategic suppliers, ultimately contributing significantly to the overall success and competitive advantage of the organisation.”

As supply chains become increasingly complex and volatile, organisations that master strategic supplier relationship management will not merely survive disruption – they will transform it into competitive advantage. 

Samit's insights illuminate the path forward for procurement professionals ready to embrace SRM's strategic potential.