The world of Supplier Relationship Management can sometimes be a bit difficult to understand. Here are 6 keywords to help you through the different concepts behind the words and make your SRM experience easier.
Supplier Relationship Management (SRM)
Supplier Relationship Management consists of businesses collaborating closely with their suppliers to actively communicate and systematically record the data and documents issued. The resulting network aims to find a lasting innovative and effective process to increase profitability and create a competitive advantage for all parties.
Cloud Computing is an IT-model offering an easy and on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services). The cloud requires no know-how and mainly aims to cut costs, companies not being concerned with in-house IT-details to better focus on their core business. It comprises 3 different service models: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS).
Document management represents an automatic and electronic management of all kinds of documents transferred between businesses, such as supplier documents, manufacturing documents, and agreements. By exchanging data and information automatically and electronically, both parties can reduce administrative costs and save time. By managing its documents via a cloud computing service, no additional memory space will be required and several users can have access simultaneously to the documents.
A business network represents a group of business, suppliers and customers interconnected and exchanging information, documents and products. The active communication and collaboration among these connections help the different group members to develop together and profit from the relationships created.
Supply Chain Management (SCM)
Supply Chain Management represents the optimization of the different supply links from the extraction of raw materials to the final product. By pushing the planning, management and control of their value added chain systems across departments and corporate boundaries, businesses can optimize their services and costs all along their supply and production chain.
Customer Relationship Management (CRM)
Customer Relationship Management is an approach of business consisting in compiling information, such as customer contacts, purchases or technical support in order to establish a database helping the company to create a sustainable and enhanced relationship with their customer. By better understanding their needs and providing a personalized service, the company can offer to its customers a unified face and a high quality experience with their product.