Supply chain leaders responsible for sourcing and procurement are often tasked to implement a supplier relationship management (SRM) initiative that often fails due to poor program design and lack of engagement from key internal and external stakeholders. Gartner’s SRM research focuses on SRM as a process to identify, engage and develop strategic suppliers to evolve from a cost-focused relationship to a mutually beneficial partnership.

Supply chain sourcing and procurement leaders face continuous pressure to optimize costs while supporting increasing customer demands and agility. Yet in their endless pursuit of cost savings, organizations often create unnecessary supplier risks — e.g., pushing away suppliers whose unique capabilities may be critical to their business success.