Supplier relationship management (SRM) software is used to facilitate and enhance business relationships between companies and their suppliers. This type of software is used to control interactions, evaluate suppliers based on performance, and select the best provider for various needs such as transportation or professional services. Supplier relationship management solutions are used by procurement professionals to optimize purchasing by establishing mutually beneficial business relationships with suppliers.
Supplier relationship management software can be delivered as a module or component of supply chain suites, or as a standalone software product. When provided separately, supplier relationship management software needs to integrate with purchasing software, supply chain planning software, and supply chain visibility software.
To qualify for inclusion in the Supplier Relationship Management category, a product must:
- Manage supplier information such as pricing or certifications
- Provide criteria and tools to evaluate vendor performance
- Help users choose the best supplier for various activities
- Ensure that suppliers comply with internal policies and legislation
- Create and manage approved supplier lists
- Perform supplier audits and identify potential issues
