SRM Full Form

SRM full form is Supplier Relationship Management. It is a type of approach which is used to manage the relationship between the company and suppliers, helping in improving companies overall performance.

What is SRM Full Form?

As mentioned above, the full form of SRM is Supplier Relationship Management, which is a process by which an organization manages communication with individuals. It also helps in  organizing the delivery of services and raw goods. It focuses on developing two-way communication. There are advanced SRM software that make organizations perform business transactions effectively and smoothly. SRM helps to regulate and control the value of each supplier, it also enables managers to work effectively on maintaining relationships with suppliers.

History of SRM

The term supplier relationship management was developed by Peter Kraljic in 1983 who was the director of McKinsey & Company. During the meeting with corporate buyers regarding growth in supply management the need and the term SRM was originated. He also argued that every buyer should know about their risk and impact of profitability upon a company and to execute the SRM strategies to meet the needs of customer/buyer.

Advantages of SRM

SRM is known as the practice of managing and developing relationships between company and supplier which results in smooth flow of supply chain. So, it's really important to have an effective SRM in an organization which results in growth. Below mentioned are the advantages of SRM:

1.     Cost Reduction: SRM helps in lowering the chances of delays, and material quality issues which at last results in customer benefits and reduced costs in the long run.

2.     Enhanced Effectiveness: Good relationship with suppliers helps in preventing issues and problems. Building trust with vendor's affects better working which helps in cases when a problem arises, thus during a crisis, good relationships will benefit in finding solutions fast.

3.    Constant Development: Building good relationships between manufacturers and suppliers creates a regular exchange of ideas and feedback. This results in greater work efficiency and improved customer service.

4.   RiskReduction: Good relationships with the organization and supplier leads to low-risk of delayed supply or other issues.

5.   Quick Decision-Making: Companies having healthy relationships with suppliers can develop an effective mutual understanding for collecting and sharing data that will help both the individuals to improve their quality of work.

6.   High-Profit Margins: Having strong SRM techniques helps in achieving high profits as expenses can be negotiated easily.,

What is the Process of SRM?

  The process of SRM includes of majorly 3 steps which are mentioned below:

1.  Segmentation of Suppliers: The organization identifies all suppliers and then categorizes them by their importance to the business.

2.  Developing Strategy for Supplier: During this step, the organization creates a tactical plan and performance metrics for their supplier which helps in ensuring effective relationships and benefits the organization in the long run because suppliers play a crucial role in the success of the organization.

3.  Executing Supplier Strategy:  In the last step it assigns day-to-day tasks and continuously measures the success rate of the strategy.

What Does SRM Software Mean?

The software offers huge functions which help in developing strong management operations for suppliers. Below are some features and abilities of SRM software:

·       Helps in better scheduling

·       Organizing supplier information

·       Effectivity in communication and contact management 

·       Better management and creation of invoices and requisitions

·       Effective sourcing

·       Monitoring sales

Types of SRM Supplier Relationships

SRM includes the following types of Supplier relationship

·   Vertical: In this category the supply chain is linked between the sellers and manufacturers. Through this, each individual focuses on the fulfillment of their needs and goals for the supply chain. For example, retailers, manufacturers, distributors and suppliers.

·   Horizontal: This relationship happens between companies which work together. The horizontal relationship depends on mutual trust and risk.

Top SRM Practices

Supplier Relationship management plays an important role in maintaining the supply chain process. Therefore, below mentioned are the best SRM practices which every organization should follow to ensure success in the highly competitive market:

1.       Establishment of business need

2.       Manage and create database for supplier

3.       Categorization of suppliers

4.       Plan for risk solutions

5.       Assigning tasks/responsibilities to individual employee

6.       Use of technology

7.       Monitoring Supplier performance  

 Components of SRM

• Organizational Structure: Firstly, the establishment of an SRM team which will be responsible for developing and monitoring SRM activities across the business. The SRM team should consist of persons having technical, commercial and good communication skills. As well, good communication will also lead to maintaining good relationships. Secondly, there should be a relationship manager to create and maintain healthy relationships with suppliers as they play a crucial role in the overall process. This creates an effective link between SRM strategies and business overall strategy  
• Governance: It is used to connect with employees effectively by developing escalation methods which help in the quick resolution of problems, strategic planning and regular monitoring of meetings, which ultimately result in fewer internal conflicts.
• Joint Activities: It includes feedback on strategic SRM programmes, which helps to bring suppliers and companies together. Organizing executive and business strategy meetings regularly which provides a platform to discuss points related to risk, resources, production and many more. A joint business meeting helps to develop innovative ideas.
• Value Measurement:  SRM helps in achieving creative ideas which later transform into effective product offerings along with services for customers. A two-way scorecard is considered the best tool for monitoring performances and telling areas where improvement is required as it includes qualitative and quantitative measures. Some organizations also conduct a 360-degree scorecard which also includes survey feedback of suppliers. These result in cost savings, improving design plans, boosting manufacturing and delivery, increasing revenue opportunity and many more.
• System & Technology: There are many technologies and systems which are used in SRM. The systems are used to monitor and collect data regarding supplier performance which results in faster decision making, boosts the process of improvement, maintains good relationships, brings transparency and consistency, and motivates the employee.   

Challenges of SRM

Below mentioned are some Challenges faced by SRM:

• Lack of investments in organization
• Vision is not clear
• Lack in leadership
• Ineffective support
• Internal conflicts
• Common understanding missing

Other Full Forms for SRM

In addition to Supplier Relationship Management, there are a few more SRM full forms, some of which have been given below: 

Sri Ramaswamy Memorial College: SRM is considered among the top ranking universities in India, specializing in offering courses related to science and technology. They offer both UG and PG courses.    

Switched Reluctance Motor

An electric motor like SRM which is a switched reluctance motor runs through reluctance torque. The application of switched reluctance motors is different from the types of common brushed DC motors. Here, the power can be transmitted to windings within the stator instead of the rotor which is used in different motors. An alternate name for this motor is VRM, the full form of which is Variable Reluctance Motor. For carrying out a better and more efficient operation of this motor, it uses a switching inverter. The control characteristics and application of this motor are the same as DC motors which are electronically commutated. Generally, these motors are applicable and are put to use where sizing, as well as horsepower (hp) to weight, is critical.

Advantages of Switch Reluctance Motor 

Using SRM motors over the years has proved beneficial and effective in the electronic system. A few of the potential advantages of Switch Reluctance Motor are:

• The SRM is very simple in construction & the rotors in this motor are extremely strongly built.
• For high-speed applications, these motors are applicable and used.
• The VFDs, known as variable frequency drives of this motor are somewhat simpler in nature as compared with conventional VFDs which are used in different applications.
• The switch reluctance motor does not use any additional ventilation system when the stator, as well as rotor slots, is projected. The additional ventilation system is not used so that the airflow can be maintained among the slots.
• These motors are comparatively less expensive because of the nonexistence of permanent magnets.
• The power of fault tolerance in these motors is high.
• In the case of working, this motor works with a simple two-phase or three-phase pulse generator.
• In case of any Phase losses, it does not change the operation of the motor.
• As per its working procedure, once the phase sequence is changed then the motor direction will be changed.
• Inertia Ratio or High Torque is prevalent in switch reluctance motors.
• A Self-starting mechanism is present which does not allow it to use additional arrangements

Standard Reference Method

Solid Rocket Motor