Supply Chain Relationship Management

CSCP describes CRM and SRM as two sides of the same relationship-management challenge. Organizations must manage upstream and downstream relationships while connecting information, processes and objectives across the chain.

Why it matters

Customer needs affect suppliers, and supplier capabilities affect customer value. Managing the two sides in isolation can create disconnected decisions and missed opportunities for collaboration.

Core concepts

• CRM and SRM should be integrated with supply-chain processes rather than managed as isolated systems.

• Collaboration can connect customers and suppliers to create value for the overall supply chain.

• Relationship-management processes include managing relationships with both customers and suppliers.

• Customer relationship activities include segmentation, service packages, feedback and ongoing communication.

• Supplier relationship activities include strategic fit, total cost, contracts, improvement and performance review.

• Relationship governance should define communication, ownership, expectations and escalation.

• Processes should be reevaluated as customer needs, supplier capabilities and strategic priorities change.

Remember for the exam

• CRM and SRM are complementary.

• Customer and supplier relationships affect one another.

• Relationship management requires process integration, not only software.

• Governance and performance feedback sustain relationships over time.

Apply it

• Use this concept in a practical decision by asking: Supply Chain Relationship Management

• Then check the decision against this principle: CSCP describes CRM and SRM as two sides of the same relationship-management challenge. Organizations must manage upstream and downstream relationships while connecting information, processes and objectives across the chain.

Exam trap

Watch for questions that test this distinction or principle: CSCP describes CRM and SRM as two sides of the same relationship-management challenge. Organizations must manage upstream and downstream relationships while connecting information, processes and objectives across the chain.

Key takeaway

Supply chain relationship management connects customer relationship management and supplier relationship management so value can be coordinated across both sides of the supply chain.