Sustainability Language

Supply Chain & Due Diligence

Supplier relationship management

Supplier relationship management is the structured governance of supplier selection, contracting, communication, performance, improvement, payment and exit.

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Definition

Supplier relationship management is the coordinated process through which an organisation selects, contracts with, communicates with, monitors, supports, pays, escalates and, where necessary, exits supplier relationships.

Overview

What it means in practice

Responsible management aligns commercial terms, purchasing behaviour, due-diligence expectations, capacity support, grievance channels and remediation. Audit scores alone do not constitute a relationship strategy.

Why it matters

A buyer's forecasts, prices, lead times, specification changes and payment behaviour can enable or undermine the sustainability performance it asks suppliers to deliver.

Common misconception

Transferring a code of conduct to suppliers does not transfer responsibility for the buyer's own decisions or for due diligence across the relationship.

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