Question 1

What is Supplier Relationship Management (SRM)?

Accepted Answer

Supplier Relationship Management (SRM) refers to the systematic approach to managing an organisation's interactions with its suppliers. It aims to streamline and improve supplier performance, reduce risks, and enhance overall collaboration.

Question 2

How does data-driven decision-making impact SRM?

Accepted Answer

Data-driven decision-making enhances SRM by providing actionable insights derived from analytics. This allows organisations to make informed choices about supplier selection, performance evaluation, and risk management based on empirical evidence rather than intuition.

Question 3

What role do analytics play in improving supplier relationships?

Accepted Answer

Analytics play a crucial role in improving supplier relationships by enabling organisations to assess supplier performance, identify trends, and anticipate issues. This leads to better negotiation strategies, risk mitigation, and the ability to leverage suppliers’ strengths.

Question 4

How can companies navigate international supplier relationships effectively?

Accepted Answer

Companies can navigate international supplier relationships by understanding cultural differences, establishing clear communication channels, and employing local market knowledge. Building trust and maintaining regular engagement with suppliers is also essential.

Question 5

What are some effective communication strategies for SRM?

Accepted Answer

Effective communication strategies for SRM include regular updates, open feedback loops, establishing clear expectations, and utilising technology platforms for seamless interaction. Fostering a culture of transparency and collaboration also enhances dialogue with suppliers.