Supplier relationship management (SRM) goes well beyond the requirements of simply meeting the Federal Acquisition Regulation, and how traditional contracts are managed. It requires extensive knowledge and analysis of markets and suppliers to improve sourcing.
As a result, more precise contracts are created that better match commercial practices. Further, it lowers barriers to entry, and creates an environment that supports improved supplier performance and more effective measurement of performance.
Consequently, the government becomes a more attractive customer and gets more value for its contract spending, while suppliers are incentivized to provide better quality goods and services. This helps build the pool of well qualified suppliers for future work.
To read more of this article, click here.