What is supplier relationship management in SAP SRD-SRM - SRM-Supplier Relationship Management?

SAP Term: supplier relationship management

• Component: SRD-SRM

• Component Name: SRM-Supplier Relationship Management

• Description: A comprehensive approach to managing the flow of information between a company and its suppliers. Purchasing data is consolidated and classified to develop efficient procurement strategies that lead to more effective negotiations with suppliers and lower costs. Supplier relationship management refers both to these business practices and to the related software.

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• Key Concepts: 
  Supplier Relationship Management (SRM) is a component of SAP software that helps organizations manage their relationships with suppliers. It provides a comprehensive set of tools to streamline the procurement process, from supplier selection and onboarding to contract management and payment processing. SRM also helps organizations track supplier performance and compliance, as well as identify areas for improvement. 
  
  How to Use it: 
  SRM can be used to manage the entire procurement process, from supplier selection and onboarding to contract management and payment processing. It also provides tools for tracking supplier performance and compliance, as well as identifying areas for improvement. Additionally, SRM can be used to create and manage purchase orders, track delivery status, and generate reports on supplier performance. 
  
  Tips & Tricks: 
  When using SRM, it is important to ensure that all suppliers are properly onboarded and that contracts are regularly reviewed and updated. Additionally, it is important to track supplier performance and compliance in order to identify areas for improvement. Finally, it is important to use the reporting capabilities of SRM in order to gain insights into supplier performance. 
  
  Related Information: 
  SRM is part of the SAP suite of software solutions, which includes ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), SCM (Supply Chain Management), and more. Additionally, SRM can be integrated with other SAP solutions such as Ariba Network and SAP Fieldglass in order to provide a more comprehensive view of the procurement process.