Which practice in SCM focuses on building and maintaining relationships with suppliers to ensure timely procurement and favorable terms?

Which practice in SCM focuses on building and maintaining relationships with suppliers to ensure timely procurement and favorable terms?

• A. Inventory control
• B. Supplier relationship management
• C. Customer relationship management
• D. Order fulfillment management

Answer: (B)

Establishing and nurturing relationships with suppliers to ensure timely procurement and favorable terms is what this practice is all about. This approach, Supplier Relationship Management, focuses on selecting suppliers, negotiating contracts, sharing forecasts, and continuously monitoring performance to keep the supply chain smooth and costs favorable. It emphasizes collaboration, communication, and risk management across the supplier network, not just issuing orders. Others are about different sides of the chain: inventory control centers on stock levels and when to reorder; customer relationship management concentrates on interactions with customers; and order fulfillment management deals with processing and delivering orders to customers.

Establishing and nurturing relationships with suppliers to ensure timely procurement and favorable terms is what this practice is all about. This approach, Supplier Relationship Management, focuses on selecting suppliers, negotiating contracts, sharing forecasts, and continuously monitoring performance to keep the supply chain smooth and costs favorable. It emphasizes collaboration, communication, and risk management across the supplier network, not just issuing orders.

Others are about different sides of the chain: inventory control centers on stock levels and when to reorder; customer relationship management concentrates on interactions with customers; and order fulfillment management deals with processing and delivering orders to customers.