Spot the difference

Alan Day
11 August 2014

The difference between SRM and SPM is often misunderstood. But as Alan Day explains, SPM is only a part of what’s needed to build a valuable and broad-based SRM strategy.

After six years of undertaking global research into supplier relationship management, one thing that stands out is the confusion between supplier relationship management (SRM) and supplier performance management (SPM). For many organisations the terminology seems to be interchangeable.

When asked in our 2013 study “what is the primary focus of your SRM programme?” around 50 per cent said it was on measuring and monitoring the performance of suppliers, rather than creating a collaborative, two-way, value-adding relationship.

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