The supplier relationship management process provides the structure for how relationships with suppliers will be developed and maintained.
As in the case of customer relationship management, close relationships will be developed with a small subset of suppliers based on the value that they provide to the organization over time, and more traditional relationships are maintained with the others.
A PSA is negotiated with each key supplier that defines the terms of the relationship. For segments of less critical suppliers, the PSA is provided and not negotiable. The desired outcome is a win-win relationship where both parties benefit