Nurturing the relationship with suppliers is a critical component of the category management procurement model.
Supplier relationship management, or SRM, reshapes every step of the traditional acquisition lifecycle to increase the likelihood that agencies will contract with the most suitable suppliers and enable those companies to deliver on expectations.
SRM goes well beyond the requirements of traditional Federal Acquisition Regulation contract management: It requires extensive knowledge and analysis of markets and suppliers to improve sourcing. It results in more precise contracts that better match commercial practices. And it creates an environment that supports improved supplier performance and more effective measurement of that performance by the government.
As a result, capable, high-quality suppliers are more likely to bid on government work and to deliver it exceptionally. SRM also helps streamline government buying and drives down total costs over the term of the contract.
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.