Council of Supply Chain Management Professionals (CSCMP) Practice Exam 2026 - Free CSCMP Practice Questions and Study Guide

A Supplier Relationship Management (SRM) system is primarily designed to enhance the interactions and relationships between an organization and its suppliers. One of the core functionalities of SRM systems is to track supplier interactions, which includes monitoring communications, contract compliance, supplier performance metrics, and overall collaboration. This capability is crucial for fostering strong partnerships with suppliers and ensuring that both parties benefit from the relationship.

Tracking supplier interactions allows organizations to maintain a comprehensive understanding of their supply base, identify areas for improvement, and manage potential risks associated with suppliers. Effective tracking can lead to improved efficiency, better negotiation outcomes, and enhanced supplier performance, ultimately contributing to the organization’s operational success.

In contrast, managing customer satisfaction levels pertains more to customer relationship management (CRM) systems. Monitoring production costs relates to operational management and finance, while coordinating warehouse operations is typically the function of a logistics or warehouse management system. Each of these areas is important but does not fall within the specific scope of an SRM system.