What is a potential result of effective SRM relationship management?

Effective Supplier Relationship Management (SRM) focuses on building and maintaining strong relationships with suppliers to foster collaboration, trust, and mutual benefit. When organizations successfully implement SRM practices, they typically see improved supplier performance and enhanced collaboration.

This improved performance can be attributed to clear communication, shared goals, and a better understanding of each party’s needs and capabilities. When suppliers feel valued and engaged, they are more likely to deliver higher quality products and services, innovate, and respond more effectively to the buyer's requirements. Additionally, collaboration can lead to joint problem-solving, whereby both parties work together to overcome challenges and optimize processes, ultimately benefiting the overall supply chain.

In contrast, options that suggest increased supplier turnover, decreased communication, or higher reliance solely on internal resources do not align with the fundamental goals of SRM. Effective SRM is all about nurturing relationships rather than abandoning them or limiting interactions, which reinforces why improved supplier performance and collaboration is the expected outcome of well-executed SRM strategies.