Role of Suppliers Relationship Management in Logistics and Chain of Supply

Increasing competition, market development and business environment, have changed the methods of supplying items and relationship between buyers and suppliers. In these new circumstances, it is necessary to enhance the relations between suppliers and develop collaborative and sustainable relationships with them in order to decrease the expenses and increase flexibility when faced with market changes. In this regard, some of the largest global software companies have presented effective and comprehensive solutions such as Suppliers Relationship Management and have made significant improvements. But creating such systems has been mostly due to the increased reliance on contractors and suppliers in organizations. To increase profit, companies should select an appropriate supplier in the minimum time, thus increasing strategic relationships with suppliers and establish effective interactions with them. Supplier’s Relationship Management systems must provide tools to develop such interactive, extensive and strategic relationships. These systems manage the procurement process and strategic supply within and between organizations. Experience has shown that successful companies and organizations are those whom succeed to establish strong and stable relations with their suppliers.Considering the importance of the aforesaid, in this article we set out to investigate the latest findings about the Suppliers Relationship Management system, its components, processes and benefits of its application in organizations and also we would express its role in logistics and chain of supply.