The Procurement Glossary » Supplier Relationship Management (SRM)

Supplier Relationship Management (SRM)

Suppliers & Vendors

Also known as: SRM

Definition

A strategic approach to managing key supplier relationships to unlock mutual value beyond price.

Explanation

SRM focuses effort on the suppliers that matter most, building collaborative relationships that drive innovation, reliability and continuous improvement. It goes beyond transactional management to joint planning and shared goals.

Example

Through SRM, the buyer and a strategic supplier co-develop a new packaging design that cuts cost for both.

Related terms

• Supplier Management — The discipline of selecting, onboarding, evaluating and developing suppliers to maximise value and minimise risk over time.
• Supplier Segmentation — Grouping suppliers by importance and risk so management effort is focused where it delivers most value.
• Strategic Supplier — A supplier critical to the business — by spend, risk or capability — that warrants a close, managed relationship.
• Supplier Collaboration — Working jointly with suppliers on shared goals such as cost reduction, innovation, quality or forecasting.

Related concepts

• Supplier Management — Onboarding, qualifying, evaluating and governing the suppliers a business relies on — turning a scattered vendor list into a managed supply base.

Frequently Asked Questions

What is Supplier Relationship Management (SRM)?

A strategic approach to managing key supplier relationships to unlock mutual value beyond price. SRM focuses effort on the suppliers that matter most, building collaborative relationships that drive innovation, reliability and continuous improvement. It goes beyond transactional management to joint planning and shared goals.

Can you give an example of Supplier Relationship Management (SRM)?

Through SRM, the buyer and a strategic supplier co-develop a new packaging design that cuts cost for both.

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