Which of the following best describes the goal of SRM?

The goal of Supplier Relationship Management (SRM) is best described by the enhancement of interactions across the supply chain. SRM focuses on developing strong, collaborative relationships with suppliers to foster communication, trust, and mutual benefit. This approach enables organizations to leverage their suppliers’ capabilities and resources effectively, which can lead to better innovation, quality improvements, and cost efficiencies.

By enhancing interactions, businesses can better understand their suppliers’ perspectives, optimize processes, and ultimately create value for both parties. This synergy can result in improved problem-solving and increased agility in responding to market demands, thereby strengthening the overall supply chain.

In contrast, eliminating all suppliers would not be a practical or sustainable approach since a diverse supplier base is often crucial for competition and risk management. Increasing product prices is generally not a goal of SRM; rather, the focus is on creating value and efficiency that can lead to more competitive pricing overall. Lastly, creating barriers with suppliers contradicts the philosophy of SRM, which aims for collaboration and open lines of communication rather than isolation or obstruction.