Certified Supply Chain Professional (CSCP) Practice Exam

What does Supplier Relationship Management (SRM) primarily manage?

1. Interactions with staff and stakeholders

2. Operations within the organization

3. Interactions with suppliers

4. Company financial assessments

The correct answer is: Interactions with suppliers

Supplier Relationship Management (SRM) primarily focuses on managing interactions with suppliers. It encompasses strategies and practices aimed at establishing collaborative relationships with suppliers to enhance overall performance and drive value within the supply chain. SRM involves systematic management of supplier relationships through effective communication, performance evaluation, engagement in joint improvement initiatives, and negotiations. By fostering strong partnerships with suppliers, organizations can ensure timely delivery of materials, improve quality, and create opportunities for innovation. This management approach also helps organizations mitigate risks and enhance supply chain resilience by building robust networks of reliable suppliers. Consequently, engaging effectively with suppliers allows companies to leverage their capabilities and contributions, which is essential in today's dynamic and competitive environment.