Definition of Supplier Relationship Management.
What is Supplier Relationship Management (SRM)?
Supplier Relationship Management (SRM) means following a strategic process that improves the communication and collaboration between an organization and its suppliers. SRM aims to create a more efficient and effective relationship that results in improved quality, better prices, and a more responsive supply chain.
Supplier relationship management is the process of management of supplier information, contracts, performance, and risks. It also includes the development of policies and procedures for working with suppliers. SRM is a proactive approach that requires regular communication and collaboration between an organization and its suppliers. It enables businesses to streamline and automate their supply chain systems.
Organizations that have implemented supplier relationship management have seen improvements in supplier performance, quality, and responsiveness. SRM can also help to reduce costs and improve the efficiency of the supply chain. Some benefits of Supply relationship management include cost minimization, better efficiency and execution, and a boost in the flexibility of the business.
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