Supplier relationship management (SRM) includes the negotiation process with suppliers. SRM transforms negotiations into an opportunity to find suppliers who bring a high level of compatibility with the business and other suppliers in the supply chain. It takes new negotiation tactics to identify these suppliers.
By Lena Haram

Some procurement functions have undergone or want to undergo significant changes due to technology and globalization. Many continue to operate primarily as a routine, document processing function rather than a strategic one, but are ready to move the function to the supplier relationship management (SRM) business model. The digitally transformed procurement department utilizes technology to automate the documents and routine transactions, and devotes quality time to developing strategic supplier relationships.

One of the challenges both types of procurement functions face is learning new negotiation skills to develop pro...