Supplier relationship management
SRM / SRM
Supplier relationship management is the structured approach to managing interactions, performance, risk and value creation with important suppliers over the life of the relationship.
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Simply put
What it means in ordinary work
It is about working with key suppliers deliberately, not just calling them when something goes wrong. It includes governance, communication, performance reviews and joint improvement.
Why it matters
Good relationships can improve service, innovation and problem solving. Poorly governed relationships can hide risk, allow value leakage and create dependence.
A hypothetical in practice
A hypothetical utility holds quarterly reviews with its critical maintenance partner, covering safety, availability, improvement projects and contract obligations. Both sides maintain a shared action log with named owners.
Common pitfalls
SRM is not entertainment or a friendship programme. It needs objectives, evidence and decision-making.
Focusing only on supplier performance can miss how buyer behaviour and unclear requirements affect outcomes.
Regional lens
How this lands where you work
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As-of date for date-sensitive regional content: 5 November 2026. Read the review policy.