Supplier Relationship Management (SRM)

Platforms Glossary

SRM refers to the relationship between a supplier and a buyer. Buyers need to assess a supplier to ensure they can meet their business needs, which includes the quality of products or services and how quickly they can be deployed. But it also includes customer service and sustainable logistics. From the supplier’s perspective, buyers must pay on time or have good credit. There must be open and clear communication on both sides of the relationship.

SRMs are critical for all small businesses, whether they are providing or buying a product or service. Reassessing the effectiveness of suppliers and the reliability of buyers regularly helps ensure positive SRM and lets businesses know when they may need to change suppliers.