Supplier Relationship Management (Srm) Definition
Supplier relationship management (SRM) is the discipline of strategically planning for, managing, and developing relationships with key suppliers that enable an organization to achieve its business goals. SRM goes beyond traditional supplier management and procurement to encompass a more holistic view of the entire relationship between an organization and its suppliers.
SRM definition according to Gartner: ‘Supplier relationship management is a comprehensive approach to managing an enterprise’s interactions with the organizations that supply the goods and services it uses. SRM extends and complements enterprise resource planning (ERP) and procurement functionality by providing organizations with visibility into and control over the financial performance, quality levels and delivery reliability of their suppliers.’
The goal of SRM is to create long-term, mutually beneficial relationships with key suppliers that enable an organization to achieve its business objectives. An effective SRM program can help an organization improve supplier performance, reduce costs, foster innovation, and mitigate risk.
