What is Supplier Relationship Management and Why Does it Matter?

Supplier Relationship Management (SRM) — which emerged as a term or an idea only a few years ago — has rapidly gained traction in the marketplace. Presentations on SRM are by now standard fare at most procurement and sourcing conferences. In March of 2005, the Conference Board hosted its first conference devoted specifically to SRM. But as with many big business ideas, reality falls short of hype. For example, few companies have yet implemented a formal SRM function within their Procurement organization.