Supplier Relationship Management

What is Supplier Relationship Management?

Supplier relationship management (SRM) is the process of managing the interactions and relationships between a company and its suppliers. The goal of SRM is to optimize the performance of the supplier network in order to improve the quality and efficiency of the goods and services that are provided to the company.

SRM involves identifying and selecting the most appropriate suppliers, negotiating contracts, and managing ongoing relationships with those suppliers. It may also involve establishing performance metrics and monitoring the performance of suppliers in order to identify areas for improvement.

Effective SRM can help a company reduce costs, improve the quality of the goods and services it receives, and build long-term partnerships with its suppliers. It can also help a company to manage risks related to its supply chain and to increase the efficiency and agility of its operations.