Supplier relationship management (SRM) is the discipline of strategically planning for, and managing, all interactions with third party organizations that supply goods and/or services to an organization in order to maximize the value of those interactions.
Supplier relationship management is a comprehensive approach to managing an enterprise's interactions with the organizations that supply the goods and services it uses.
The efficient processes in SAP SRM enable you to cut down your procurement expenses and to work more intensively with more suppliers than ever before.
SRM includes both business practices and software and is part of the information flow component of supply chain management (SCM).
SRM practices create a common frame of reference to enable effective communication between an enterprise and suppliers who may use quite different business practices and terminology.