Supplier relationship management involves developing partnership relationships with the key suppliers to reduce costs, innovate with new products and create value for both parties based on mutual commitment to long-term collaboration and shared success
the practices needed to establish the business rules, and the understanding needed for interacting with suppliers of products and services of varied criticality to the profitability of the enterprise
SRM is a comprehensive system, facilitated by software, that manages the firm’s interactions with its supply base
SRM helps the firm identify critical suppliers and to improve how the firm works with these suppliers on such activities as reducing costs, introducing new products, creating cash, mitigating supply and regulatory risks, and ensuring a secure supply of scarce materials
SRM is a means of building closer relationships with selected strategic suppliers, the purpose being to discover the added features that could enhance the relationship while improving business performance as the firms work in a network environment for mutual benefit and increase the likelihood of creating profitable new revenues together
SRM as a comprehensive approach to enhance cooperation (business relationship level), coordination (information systems level), between the enterprise and its suppliers in order to continuously improve efficiency and efficacy of collaboration and concurrently enhance quality, security and innovation
The Primary Focus of SRM in Buy Side Organizations