Which of the following is a way SRM can contribute to cost reduction strategies?

The choice highlighting improved supplier negotiation accurately reflects how Supplier Relationship Management (SRM) can play a significant role in cost reduction strategies. SRM emphasizes building strong relationships with suppliers, which facilitates better communication and understanding of each other's needs. Through effective negotiation strategies, organizations can often secure better pricing, more favorable terms, and value-enhancing agreements that directly contribute to lowering overall costs.

Additionally, strong supplier relationships can lead to collaborative opportunities, such as joint cost-saving initiatives, bulk purchasing discounts, and performance-based rewards. This not only aids in immediate cost reductions but can also result in long-term savings as suppliers feel valued and are more likely to work with the organization to achieve cost efficiencies.

In contrast, options that suggest increasing supplier prices, limiting innovation, or minimizing the use of technology would negate the benefits of SRM by creating barriers to effective collaboration and advancement. These approaches could lead to increased costs and stifle potential improvements within the supply chain that SRM aims to enhance.