Supplier Relationship Management (SRM) is the critical approach used for engaging with suppliers on a level that reflects the priorities of the customer organization and how best these needs can be achieved. The products and services procured are incredibly influential in how the organizations view and interact with each other. This differentiation process enables us to recognize that not all suppliers are the same and treating then should not be the same. Plan multiple strategies to use on different suppliers.
Maintaining good supplier relationship often leads to favourable prices, generous terms, improved availability and even the occasional buyback. It is essential to develop and maintain relationships with key suppliers. It would be a mistake to think that a small or mid-sized retailer may merely place orders with any supplier.