Supplier Relationship Management Flashcards

What is the primary goal of Supplier Relationship Management (SRM) in public procurement?

Answer: To build collaborative partnerships that deliver continuous value and performance

SRM focuses on developing strategic, collaborative partnerships with key suppliers to achieve ongoing improvements in cost, quality, and service delivery.

Which tool is most commonly used to segment suppliers in public procurement SRM programs?

Answer: A Kraljic portfolio matrix

The Kraljic matrix classifies suppliers by supply risk and profit impact, helping agencies decide which relationships warrant strategic investment.

A public buyer conducts quarterly business reviews (QBRs) with a strategic supplier. What is the primary purpose of these reviews?

Answer: To align performance data, address issues, and jointly plan improvements

QBRs create a structured forum for sharing performance metrics, resolving problems early, and collaborating on continuous improvement initiatives.

Which metric best measures a supplier's on-time delivery performance?

Answer: On-Time In-Full (OTIF) rate

OTIF measures the percentage of orders delivered on time and in full, directly capturing delivery reliability.

When a sole-source supplier consistently underperforms, what should the public buyer do FIRST?

Answer: Issue a cure notice and allow the supplier time to correct the deficiency

A cure notice formally notifies the contractor of the deficiency and provides a reasonable time to remedy it before more drastic actions are taken.

What does 'supplier development' mean in the context of public procurement SRM?

Answer: Investing resources to improve a supplier's capabilities so they can better meet agency needs

Supplier development involves the buyer actively working with a supplier—through training, technical assistance, or joint projects—to improve their performance or capabilities.