Supplier Relationship Management

The practice of creating mechanisms to increase the efficiency and effectiveness of how a company works with its service providers. The goal of SRM is to create effective processes for working together, which in turn yields lower costs of doing business. Some SRM efforts are designed to build deeper relationships that foster improved collaboration efforts and innovation. A benefit of SRM is to develop a common frame of reference for companies and services providers, thus establishing unified business practices and terminology for how the organizations work together.

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