What term refers to the development and management of supplier relationships to acquire goods and services in a way that helps achieve the immediate needs of a business?

Supplier relationship management (SRM) identifiesvendors that can supply goods, services, and other materials to the organization.

The basic aim of supplier relationship management is to identify suppliers who are very crucial for business success based on their scorecard. It helps in developing supplier relationships.

Every business has to deal with supplier risk. Often, suppliers cannot deliver products on time. Sometimes, they are not per the quality required, so SRM helps minimize the risk through proper risk management.

Strategic sourcing is the practice of establishing supply channels with the lowest overall expense, not only the lowest purchasing cost. Strategic sourcing methods strive for ongoing enhancement as well as re-evaluation of an organization's procurement activities.

Strategic sourcing assists a company in developing long-term partnerships with its providers. Strategic sourcing creates interaction among businesses as well as their suppliers by strengthening the concentration on the core strengths of the providers as well as ensuring the appropriate providers for the correct sourcing purpose.