Supplier Relationship Management (SRM)
Service Management
Supplier relationship management (SRM) consists of managing and planning constructive interactions with the third-party vendors that supply your business with goods and materials. This is an important part of both Supply Chain Management (SCM) and effective small business management.
In today’s global economy there are so many factors to consider when choosing and managing a supplier, that it can quickly become overwhelming. Thankfully, there’s new technology out there that helps to automate and simplify the process, making it easy for you to make fast, informed decisions about your suppliers. And the results are impressive: companies focused on SRM lead their peers five to one in terms of value derived from their supply base.
05 Secrets of Supplier Relationship Management (SRM)
- The focus is on the relationship.
- Expectations are changing.
- It’s mutually beneficial.
- It delivers big opportunities.
- Technology can simplify the process.
04 Steps to Effective Supplier Relationship Management
- Invest in supplier relationship management software.
- Demonstrate to your suppliers that you’re a good customer.
- Consider reducing your number of vendors.
- Keep lines of communication open.
