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 goal of Supplier Relationship Management (SRM) is to streamline and make more effective the processes between an enterprise and its suppliers just as Customer Relationship Management (CRM) is intended to streamline and make more effective the processes between an enterprise and its customers.

SRM includes both business practices and software and is part of the information flow component of Supply Chain Management (SCM).SRM increases the efficiency of processes associated with acquiring goods and services, managing inventory, and processing materials. It can lead to lower production costs and better quality.

Supplier relationships are different from simple purchasing transactions. Some of the key differentiators are:

• Sense of commitment to the supplier
• Advanced Planning : Buyers don't just communicate with suppliers when a procurement need arises; they also contact them in order to discuss their future needs and to determine how best to satisfy those needs by working together.
• Attitude And View Towards The Supplier: Having vendors who are taken as partners and not just as commodity suppliers can profoundly affect the way an organization communicates and works with its suppliers. Vendors that are deemed to be partners are encouraged to become knowledgeable about the company, its processes, its products and its goals. The result is greater buyer satisfaction with the services provided by the supplier. Vendors who are considered as partners are also known to handle handovers significantly more efficiently.

Alletec helps you build Supplier Relationship Management (SRM) system, leveraging Microsoft Dynamics. The system functionality of relevance here includes:

• Supplier Segmentation: Systems can help in supplier segmentation through supplier profiling based on a select set of parameters. These may include factors like – delivery schedule adherence, quality control history, transaction volumes, prices and payment terms
• Supplier Portal: Integrated to Customer ERP
• Customer ERP integration with Supplier ERP using Web Services or BizTalk Server
• Real-time tracking of all customer supplier business transactions, helping analytics