3.2 SUPPLIER RELATIONSHIP MANAGEMENT (SRM)
SRM provides the collaborative solutions needed to evaluate the supply strategy,
enable the supply base and engage supply relationships for mutual benefit. With SRM,
one can share timely, relevant information on every facet of the procurement and
sourcing strategy, resulting in higher compliance and control throughout operations
and delivering the maximum return on relationships with all suppliers on a continuous
basis. According to Johnson and Scholes (1999), core competencies are likely to be
more robust and difficult to imitate if they relate to the management of linkages within
the organization’s value chain and linkages to the supply and distribution chains. It is
the management of these linkages that provides leverage and levels of performance,
which are difficult to match.