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Supplier Relationship Management (SAP SRM) is a comprehensive approach to managing an enterprise's interactions with organizations that supply the goods and services it utilizes. The goal of SRM is to streamline and improve the processes between an enterprise and its suppliers, just as CRM is intended to streamline and improve 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 creates a common frame of reference which enables effective communication between and enterprise and its suppliers who may utilize vastly different business practices and terminology. As a result, SRM increases the efficiency of processes associated with acquisition of goods and services, inventory management and materials processing. 

SAP SRM automates, simplifies, and accelerates procure-to-pay processes for goods and services. With SAP SRM, you can reduce procurement costs, build collaborative supplier relationships, better manage supply bases, and improve your bottom line with innovative offerings and a faster time to market.


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