Supplier Relationship Management (SRM)

Supplier Relationship Management (SRM)

The aim of implementing strategic procurement management shall not be limited to only acquiring goods and services; it should be maintaining the sustainability and relationship with your suppliers either for key or basic suppliers. Understanding the market of supply is procurement target to identify the key suppliers who can improve the enterprise production and contribute in their innovation programs either for their regulars selling items / new projects or both.

Dealing with thousands of suppliers locally or globally efficiently is requiring an independent management so We are helping enterprises to upgrade their procurement division into Supplier Relationship Management. As Mr. Sami bin Ghanem has a different perspective of SRM, he believes that SRM is the new generation of procurement and should be set as an Entity and shouldn’t be considered as tool.

The definition of the SRM:

“It is a systematic and process action of management executed by the Enterprise to fulfill its need of supplies through the Enterprise interactions with its classified suppliers based on its suppliers data base.”
Developed by Mr. Sami Bin Ghanem

The aforesaid definition is describing that all the relationship to be built with suppliers has to be determined in classification to distinguish the level of expectation from each supplier of what would contribute to the Enterprise strategies from regular supplies of what actually is needed to significant supplies in which the suppliers do adding value in various perspectives particularly where it impacts to the Enterprise strategies.

This relationship has to be in compliance with the Enterprise action of management executed from specific functions across the Enterprise, under the management of SRM, which has defined roles , responsibilities and expertise personnel to plan ahead with right strategy for each kind of suppliers either key or basic to do business with.

The SRM is not only focusing on the key suppliers rather than a complete cycle of suppliers engagement, registered in the supplier data base, all the time as long as they have business or potential business with the Enterprise.