Supplier relationship management (SRM) is the process of evaluating supplier partnerships and identifying opportunities to strengthen supply chains. The purpose of SRM is to maximize the value of supplier relationships and to streamline procurement processes.
Without an effective SRM strategy, buyers risk disrupted supply chains, backorders, stockouts, and more. The key to improving SRM is taking a proactive approach (planning ahead) rather than a reactive approach (only engaging with vendors when problems arise).
This article will explore the growing importance of SRM and how you can improve it to get a competitive advantage and improve your bottom line.