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SAP – ERP (Enterprise Resource Planning)

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SRM ( Supplier Relationship Management)

Supplier relationship or supply chain relationship management means the firms have to works closely with supply chain partners, including customers, suppliers, and logistics suppliers. It requires integration and coordination among these partners to develop meaningful relationships through the supply chain and is a high priority to manage an enterprise.

There are two types of supply chain relationship:

1. Vertical Relationship – It refers to traditional links between firms such as retailers, distributors, manufacturers, and suppliers.

2. Horizontal Relationship – It acts as a service agreement between two or more independent logistics provider firms based on cooperation and trust, sharing risks, investments, and they follow mutually agreeable goals.

The main process in SRM includes the procurement of materials and services and involve integration with planning, inventory, and accounting. The procurement steps include shopping carts, approval of cart, sourcing, purchase orders, purchase order approval, confirmation approval, invoice approval, etc.

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