Strategic Supplier Management Definition

Strategic supplier management is the process of developing and maintaining relationships with key suppliers that are critical to the success of an organization. The goal of strategic supplier management is to create a partnership between the organization and its suppliers, in which both parties work together to improve the quality, cost, and delivery of goods and services.

In order to develop a successful relationship with its suppliers, an organization must first identify which suppliers are critical to its success. Once these key suppliers have been identified, the organization must then establish communication channels and create mechanisms for monitoring performance. Additionally, the organization must put in place policies and procedures for managing supplier contracts. Finally, the organization must continuously review and update its supplier relationships to ensure that they remain aligned with its business goals.