What can be a result of effective supplier relationship management?

Effective supplier relationship management (SRM) leads to improved organizational performance because it fosters collaboration and communication between buyers and suppliers. When organizations maintain positive relationships with their suppliers, they are more likely to achieve benefits such as enhanced supply chain efficiency, innovation, and responsiveness to market changes.

Good SRM practices can help ensure that suppliers are aligned with the organization's goals, leading to better coordination and fewer disruptions in the supply chain. Additionally, strong relationships can result in cost savings through negotiated pricing, better payment terms, and reduced lead times due to the trust built over time.

These factors contribute to overall enhanced performance, enabling organizations to deliver products and services more effectively, meet customer demands, and achieve a competitive advantage in the marketplace. This outcome underscores the importance of nurturing supplier relationships rather than viewing suppliers purely as transactional entities.