ABSTRACT
SRM can begin when the firm has profiled its purchases and has done the standardization necessary to define purchased material categories. There cannot be a misunderstanding as to which category motors or pumps belong to, or confusion about whether a particular supplier is providing. Standard nomenclature must be used and the purchases made part of a specific category in the total buy. SRM should move from “basic” suppliers that a firm needs to get its work accomplished to a focus on those of value, those adding special values, and those that have strategic importance.
