Benefits of Supplier Relationship Management
Without the supplier relationship, costs could be high, efficiency could be difficult to maintain, and pricing structures could fluctuate. Supplier relationship management can help companies drive efficiency and sustain a good level of profitability According to TechTarget, “Supplier relationship management (SRM) is the systematic approach of assessing suppliers’ contributions and influence on success, determining tactics to maximize suppliers’ performance and developing the strategic approach for executing on these determinations. It helps to create positive buyer-supplier relationships and determines which activities to engage in with each supplier. “The typical goal of SRM is to streamline and improve processes between a buyer and its suppliers — the organizations that supply the goods and services — just as customer relationship management (CRM) is intended to streamline and improve the processes between an enterprise and its customers. Underlying SRM is the focus on develo...