SRM translates as 'supplier performance' for most companies

Many organisations see supplier relationship management (SRM) as a process focused on monitoring the performance of their suppliers, rather than a collaborative, two-way relationship that can deliver value for both parties, according to a new study released by UK firm State of Flux. 
 
The global survey of 223 procurement, supply chain and supplier relationship management executives finds that almost two-thirds (62%) admitted that they did not have an accepted definition of SRM in their companies.   

“Many organisations have confused supplier performance management (SPM) with supplier relationship management (SRM),” says Alan Day, Managing Director of State of Flux.

“SPM is about getting what you have been promised in a contract, whereas SRM is about collaboratively driving value as part of a two-way relationship.”

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