Supplier Risk Management
When it comes to supply chain management, supplier risk management (SRM) is the process of assessing, managing and mitigating risks that could potentially disrupt the flow of goods and materials from suppliers to buyers.
The goal of SRM is to protect an organization’s interests by identifying and addressing risks before they cause problems. To do this, SRM programs must take a proactive approach that includes everything from supplier selection and onboarding to performance monitoring and contract management.
An effective SRM program can help organizations avoid disruptions in the supply chain, improve supplier relationships, reduce costs and increase operational efficiency.