Tag Archives:
performance measurement

The Orchestra of SRM

Ask a procurement professional what “SRM” stands for and they will most likely answer “Supplier Relationship Management.” Ask what SRM is, however, and the chances are you will receive different explanations depending upon to whom you talk. SRM is a much-used term, but one that seems to be used to describe a multitude of different supplier interventions, all serving different purposes. For some, SRM means managing those suppliers that are important to us in some way. Perhaps this might include some performance dimension and even managing how a supplier might make agreed improvements. Others might describe SRM as an approach to working closely with the critical few suppliers that are of strategic importance to us—suppliers without whom we will struggle to operate or who hold the potential to add significant value to our business and brand. Others still might point to the entire supply chain beyond our immediate supplier and that might need intervention too. So what is SRM? Well, it is each of these things, some of these things and all of these things.