Supplier relationship management as a macro business process

Purpose – Increasingly, supplier relationship management (SRM) is being viewed as strategic, process‐oriented, cross‐functional, and value‐creating for buyer and seller, and a means of achieving superior financial performance. This paper seeks to describe a macro level cross‐functional view of SRM and to provide a structure for managing business‐to‐business relationships to co‐create value and increase shareholder value. Design/methodology/approach – In order to identify the sub‐processes of SRM at the strategic and operational levels as well as the activities that comprise each sub‐process, focus group sessions were conducted with executives from a range of industries. The focus groups were supplemented with visits to companies identified in the focus groups as having the most advanced SRM practices. Findings – The research resulted in a framework that managers can use to implement a cross‐functional, cross‐firm, SRM process in business‐to‐business relationships. Research limitations/implications – The research is based on focus groups with executives in 15 companies representing nine industries and multiple positions in the supply chain, including retailers, distributors, manufacturers and suppliers. While all companies had global operations, only one was based outside of the USA. Nevertheless, the framework has been presented in executive seminars in North and South America, Europe, Asia and Australia with very positive feedback. Practical implications – The framework can be used by managers and has been successfully implemented in large corporations. The view of SRM presented involves all business functions, which extends the current thinking. Originality/value – The framework includes all business functions and was developed with input from executives representing major corporations with global operations.