What is supplier management?

Supplier Management is the process of overseeing and controlling interactions and relationships with suppliers or vendors that provide goods, services, or materials to an organization. It encompasses various activities, including supplier selection, evaluation, performance monitoring, and collaboration to ensure that suppliers meet the organization's quality, cost, and delivery requirements.

Supplier Management involves tasks such as conducting supplier assessments, negotiating contracts, establishing key performance indicators (KPIs), and managing supplier communications. The goal is to optimize supplier relationships to enhance supply chain efficiency, reduce risks, and maximize the value derived from these partnerships.

Efficient Supplier Management contributes to cost savings, supply chain resilience, and the ability to adapt to changing business needs.