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The supply relationship management function of an organization is responsible for various aspects of acquiring goods and services for the organization. Tasks associated with supply management include:-
- Analyzing spending
- Strategic sourcing
- Obtaining and evaluating quotes
from suppliers
- Negotiating
- Managing supplier performance
- Implementing technologies,
processes, policies, and procedures
to support the
purchasing process (Supplier
Relationship Management or SRM)
Supply relationship management is
generally regarded as a systematic
business process that includes more
functions than traditional buying,
such as coordinating in-bound and
internal pre-production logistics
and managing inventory.
Supply management deals primarily
with the oversight and management of
materials and services inputs,
management of the suppliers who
provide those inputs, and support of
the process of acquiring those
inputs. The performance of supply
management departments and supply
management professionals is commonly
measured in terms of amount of money
saved for the organization. However,
managing risk is one of the other
critical aspects of supply
management; especially the risk of
non-availability at the required
time of quality goods and services
critical for an organization's
survival and growth. |