Supplier Relationship Management

The way a buyer decides when to support a supplier, when to push harder, and when to reduce or end business.

Definition

Supplier relationship management, or SRM, is the part of the buyer relationship where commercial teams decide how closely to work with a supplier, how performance is reviewed, and what happens when issues repeat.

In responsible sourcing, strong SRM means the business team and the compliance team are not sending opposite signals. Support, escalation, consequences, and business decisions line up.

How this source informs this section

OECD Due Diligence Guidance for Responsible Business Conduct

OECD due-diligence guidance supports integrating supplier engagement, risk response, and business decision-making rather than isolating them.

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Why it matters

A supplier can receive a strong corrective action plan (CAP) request from compliance and the opposite signal from the commercial team if SRM is weak. That inconsistency slows remediation and confuses expectations.

Good SRM helps teams decide when to coach, when to escalate, when to slow new orders, and when to exit.

How this source informs this section

Walmart Standards for Suppliers

Supplier standards and consequence frameworks illustrate how supplier management becomes real when expectations are linked to follow-up and business consequences.

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Nuance

SRM is not just scorecards or quarterly business reviews. It becomes meaningful when sourcing decisions reflect risk and remediation reality, not just price and delivery.

The strongest SRM models make consequences and support visible at the same time, especially for high-risk suppliers that still matter commercially.

How this source informs this section

OECD Due Diligence Guidance for Responsible Business Conduct

The guidance supports reading SRM as a decision system, not just a reporting routine.

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Sources

OECD Due Diligence Guidance for Responsible Business Conduct

OECD · guidance

OECD's core guidance on how companies identify risk, prioritize, respond, track follow-up, and communicate what changed.

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Walmart Standards for Suppliers

Walmart · supplier standards PDF

Walmart supplier standards covering consequence management, recruitment expectations, and minimum supplier requirements.

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