Maturing of Supplier Relationship Management Unlocks Value

Supplier Relationship Management is not the same as Supply Chain Management. SRM creates value through strategic internal and supplier partnerships as opposed to simpler management of supply chain efficiency and productivity
— By Lena Haram

The discipline of Supplier Relationship Management (SRM) is maturing as it becomes imperative to generate value from the supply chain. SRM is not the same as Supply Chain Management (SCM). SRM is a higher level process of developing partnerships with strategic suppliers and internal leaders, and aligning those partnerships with the organization's interests and goals to create value through untapped business opportunities.

SRM development begins with stratifying the suppliers based on what is delivered to the organization, with the lowest level being transactional or tactical suppliers and the highest level being suppliers who are strategic and critical to ongoing and future business operations. Focus...

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