What is supplier relationship management?

Supplier Relationship Management (SRM) is a strategic approach that organizations use to actively manage their relationships with key suppliers or vendors. It goes beyond transactional interactions and focuses on building collaborative, mutually beneficial, and long-term partnerships with critical suppliers.

In SRM, organizations identify and classify suppliers based on their strategic importance and potential impact on the business. They work closely with key suppliers to align objectives, share information, and collaborate on areas such as cost reduction, innovation, quality improvement, and risk mitigation.

SRM involves continuous communication, performance measurement, and joint initiatives to achieve common goals. It helps organizations optimize supplier relationships, enhance supply chain resilience, and drive innovation and competitiveness.