Driving Cost Efficiency with the Supplier Relationship Management (SRM) Framework
Cost efficiency goes beyond price cuts. The Supplier Relationship Management (SRM) framework drives cost efficiency through process optimization, joint cost-reduction strategies, and performance improvement. SRM provides visibility into cost drivers and helps identify inefficiencies in logistics, quality control, and inventory. Collaborative initiatives such as design-to-cost or lean supply techniques reduce waste and overhead. With data-backed negotiations and a focus on mutual gain, SRM supports sustainable cost savings while maintaining service excellence. It’s a smarter approach to controlling spend without damaging supplier relations.