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Supplier Relationship Management or SRM is a systematic and segmented supplier management approach with the goal of cutting costs and boosting profit.
1. Sourcing
The sourcing process covers the supplier selection process and related contract development. Frequently the overall goal of this activity is to reduce the number of suppliers, in order to manage the suppliers more effectively.
2. Contract Management
SRM is about managing the ongoing contracts more intensively. As a start you will need a central view on all contracts, which is called contract administration. It is the activity of centrally capturing and monitoring contracts.
3. Supplier Development
Here procurement works with a limited number of suppliers to continuously improve or develop new products/services to gain competitive advantage. As it requires much effort from both parties, only a few suppliers and contracts will be selected for such supplier development activities.



From Procurement to Supplier Management - Contract Management

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From Procurement to Supplier Management - Contract Management

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