Chapter 04 · People & supply chainsSupply Chain & Due Diligence
Supplier relationship management
Definition
Supplier relationship management is the coordinated process through which an organisation selects, contracts with, communicates with, monitors, supports, pays, escalates and, where necessary, exits supplier relationships.
References
This reference provides supporting context for how “Supplier relationship management” is defined and used.
Overview
How it is used
Employers, buyers, suppliers, governments, workers and affected communities use “Supplier relationship management” in workplace policy, sourcing, human-rights due diligence, community engagement and supply-chain management.
In each case, the user should state the affected population, supply-chain boundary, local context, timeframe and evidence from rights-holders; otherwise, the same term may be applied to materially different situations. In this context, it refers to the structured governance of supplier selection, contracting, communication, performance, improvement, payment and exit.
Why it matters
It can affect whose rights, needs, risks and experiences are recognised in decisions. Clear use of “Supplier relationship management” helps decision-makers distinguish an intention, activity or label from demonstrated results and reduces the risk of misleading claims.