---
title: What Is Supplier Relationship Management (SRM)? | Aavenir
url: https://aavenir.com/glossary/supplier-relationship-management-srm/
description: Supplier relationship management (SRM) is a planned approach to managing suppliers, segmenting them by importance and setting a strategy for each group.
updated: 2026-11-07
---

[Home](https://aavenir.com/) / [Resources](https://aavenir.com/resources/) / [Glossary](https://aavenir.com/glossary/) / Supplier relationship management Glossary

# What is supplier relationship management?

Supplier relationship management (SRM) is a planned approach to managing suppliers, segmenting them by importance and setting a strategy for each group.

## How it works

Supplier relationship management has three main steps:

## Why it matters

Supplier relationship management shows the value each supplier delivers and which ones matter most to continuity and success. It lets managers build stronger relationships where they count, and spend less effort where they do not.

## Common challenges

- Too many suppliers and too little time.

- Supplier data spread across systems.

- No shared view of performance between buyer and supplier.

- Relationships that depend on one person rather than a process.

## How Aavenir handles it

[Onboardingflow](https://aavenir.com/solutions/vendor-onboarding-software/) keeps supplier records current, and [Obligationflow](https://aavenir.com/solutions/contract-obligation-management-software/) tracks what each supplier committed to under contract, so relationship reviews start from facts.

## Keep reading

[Supplier segmentation Supplier segmentation groups suppliers by spend, risk and importance so each group gets the right level of attention. Read more](https://aavenir.com/glossary/supplier-segmentation/)[Supplier performance management Supplier performance management measures and improves how suppliers perform, to cut cost and risk and raise quality. Read more](https://aavenir.com/glossary/supplier-performance-management/)[Vendor collaboration portal A vendor collaboration portal is a shared online space where buyers and suppliers exchange orders, documents and messages. Read more](https://aavenir.com/glossary/vendor-collaboration-portal/)

Frequently asked questions (FAQ)

## Common questions

###

### How is supplier relationship management different from performance management?

Supplier performance management measures how suppliers deliver against targets. Supplier relationship management is the wider strategy for working with each supplier, and performance is one input to it. [Read about supplier performance management](https://aavenir.com/glossary/supplier-performance-management/).

###

### Which suppliers need relationship management?

Strategic suppliers that are critical to the business, hard to replace or account for large spend deserve the most attention. Routine suppliers can be managed by exception. [Read about supplier segmentation](https://aavenir.com/glossary/supplier-segmentation/).

###

### What does good supplier relationship management look like?

Regular reviews with strategic suppliers, shared goals and measures, clear escalation paths, joint improvement plans and a single record of the relationship that does not depend on one person. [See Obligationflow](https://aavenir.com/solutions/contract-obligation-management-software/).

Have a question we have not answered? [Ask the Expert](https://aavenir.com/contact/)

Schedule a demo

## See your contracts run on one record.

- **1****A 30 minute walkthrough**Built around your team, whether that is procurement, legal, IT or finance.

- **2****Your contracts, not ours**Bring a few sample agreements and watch Aavenir AI extract and review them.

- **3****ServiceNow or standalone**We show the deployment that fits the systems you already run.

Prefer to talk first? [Contact the team](https://aavenir.com/contact/).

The form did not load. [Contact the team](https://aavenir.com/contact/) instead, or refresh the page.