Supplier Relationship Management

Supplier Relationship Management

Supplier relationship management (SRM) is a strategic approach to managing an organization’s interactions with the vendors that provide the goods and services it uses. SRM involves developing and maintaining relationships with suppliers that enable an organization to optimize its performance and meet its objectives.

An effective SRM program can help an organization improve its supplier base, reduce costs, improve quality and service levels, and increase innovation. It can also help an organization build a competitive advantage by creating a more efficient and effective supply chain.

SRM programs are often implemented using technology, such as software that automates communication and tasks related to supplier management. However, SRM is not just about technology; it is also about people and processes. Successful SRM requires a clear understanding of an organization’s business objectives and the role that suppliers play in meeting those objectives. It also requires the development of policies, procedures, and metrics for measuring success.