Supplier relationship management (SRM) is a business initiative that many companies undertake to build mutually beneficial relationships with suppliers. Well-designed SRM programs help companies to increase collaboration by identifying the right suppliers with whom to partner. Top business drivers for implementing SRM include cost optimization, risk mitigation, top-line growth from supplier innovation, operational process improvements and preferential treatment from suppliers as a customer of choice.
Despite the business case for SRM, only 35% of sourcing & procurement leaders say they have an effective supplier segmentation model. And 77% say their organizations lack an effective process to capture and develop supplier ideas. Collaboration with the supply base and supplier innovation are key to sourcing & procurement success.
Leaders in sourcing & procurement partner with Gartner to drive better cost, quality, delivery and competitive advantage from suppliers. We offer the data-driven insights and frameworks for targeting resources to the suppliers that matter most for the organization.