Companies Confusing Supplier Performance with Supplier Relationships, Study Finds

London — June 22, 2009 — Many organizations see supplier relationship management (SRM) as a process focused on monitoring the performance of their suppliers rather than as a collaborative, two-way relationship that can deliver value for both parties, according to a study released earlier this month by supply chain consultancy State of Flux.

The global survey of 223 procurement, supply chain and supplier relationship management executives found that almost two-thirds (62 percent) admitted that they did not have an accepted definition of SRM in their companies.