{"id":5896,"date":"2019-12-27T07:05:38","date_gmt":"2019-12-27T05:05:38","guid":{"rendered":"https:\/\/digitalschoolofmarketing.co.za\/?p=5896"},"modified":"2025-05-22T10:46:11","modified_gmt":"2025-05-22T08:46:11","slug":"what-is-supplier-relationship-management-in-the-media-industry","status":"publish","type":"post","link":"https:\/\/digitalschoolofmarketing.co.za\/digital-marketing-blog\/what-is-supplier-relationship-management-in-the-media-industry\/","title":{"rendered":"What is supplier relationship management in the media industry?"},"content":{"rendered":"
\"DSM<\/div><\/div>

The term \u2018supplier relationship management\u2019 (SRM), in simplest terms, refers to the interaction with, and managing of, third-party vendors which provide goods, materials as well as services to your organisation. It sounds easy enough: you select suppliers which are cost-efficient and easy to work with in order to maximise the value of the relationship<\/a>. It is particularly important for media professionals to have a thorough understanding of SRM as media and marketing agencies need to engage with a whole host of suppliers in order for them to be able to deliver the finished product.<\/p>\n

The history of supplier relationship management<\/strong><\/h2>\n

SRM came to life in 1983 when McKinsey consultant, Peter Kraljic, called for corporate buyers to grow more proactive in supply management.<\/p>\n

He argued that buyers should be looking to understand their categories\u2019 risk as well as profitability impact on a company as well as devise supplier management strategies which best meet this need. These strategic partnerships assume a major commitment from a buying organisation. They require executive sponsorship, careful cross-planning and involve a great number of meetings. Managing these relationships demand substantial more effort than as opposed to other aspects in an organisation.<\/p>\n<\/div><\/div>

\"DSM<\/div><\/div>
<\/div>

The challenges of supplier relationship management<\/strong><\/h2>\n

Obviously, as with most modern-day business practices SRM has become much more complex. Supplier management has gone through a huge transition over the last couple of years owing to growth in technology as well as the global scale of the economy.<\/p>\n

Types of suppliers which a business<\/a> is able to work with:<\/p>\n