SUPPLIER RELATIONSHIP MANAGEMENT

Supplier relationship management, also known as SRM, is a systematic approach to assess suppliers’ contributions to your business. It helps you determine which suppliers are providing the best influence on your success and ensures they are performing well. Supply chain management uses SRM in procurement, operations, and project management.

SRM helps to foster positive relationships with your suppliers and helps guide the activities you should engage in with each supplier. It works much the same way as customer relationship management, or CRM, does on the front-end, dealing directly with customers.

The main goal of SRM is to improve business processes between you and your suppliers. By creating a streamlined approach, you improve efficiency for both your business and your suppliers. Though the approach to SRM can vary from one organization to the next, the main focus is on developing a mutually beneficial relationship with all of your suppliers, especially those that are considered strategic partnerships for your brand.