Supplier relationship management as a tool for strategic purchasing development, a sleep brand case study

Abstract

Supplier relationship management (SRM) can be used as a strategic tool for organisations to improve their performance and capabilities, which in turn improves the competitive advantage. A company’s strategy influences the focus and implementation of SRM. This Master’s thesis aims to understand the benefits and challenges of SRM as well as the SRM process including supplier assessment and supplier development (SD). Furthermore, the Master’s thesis aim is to investigate the role of SRM in strategic procurement and SRM implementation. This thesis research was conducted as a single case study at a case company that operates in the E-commerce business. Qualitative research was conducted via observations, company documents, and 11 interviews conducted within the procurement department. Research findings show that the nature of the case company influences the applicability of SRM on a strategic level. Furthermore, it shows that an organisation’s strategy influences SRM and its targets.