Summarize supplier relationship management software and customer relationship management software. In what ways are these two categories of software similar?

Supplier relationship management (SRM) is a controlled and systematic approach to managing an organization's sourcing activities for goods and services. SRM goals include: streamlining and improving strategic information flows between a buyer and its suppliers, establishing governance and performance management models, and to increasing innovation either through process improvement, product development, or both. SRM software aims to simplify the management process and supplier performance evaluation process to drive effective results. SRM software also supports supplier risk management, product life-cycle management, and contract management to ensure compliance throughout the lifecycle of the relationship. By achieving these goals, SRM and related software help to reduce costs and improve the capability of the end product for the consumer. Effective alignment of capable SRM software with strong procurement processes will yield the ability to consistently acquire needed inventory at the best available prices. Interactions will be conducted and managed in a systematic, integrated fashion across business units, and across functions. And, supplier assets, expertise, and capabilities will be leveraged for maximum competitive advantage. Customer relationship management (CRM) focuses on the practices, strategies, and technologies that companies use to manage and analyze customer interactions and data throughout the relationship lifecycle. CRM software consolidates customer information in a database so business users can more easily access and manage it. The system serves as a vital nerve center to manage the many connections between sellers and buyers in a supply chain. It facilitates information sharing and accessibility. The goals of CRM software are to improve business relationships with customers, promote retention, and drive sales growth. Each goal requires the organization to learn more about customer needs, behaviors, and demand patterns in order to develop stronger bonds. Though CRM appears to be a marketing tool, the information can also be used by supply chain managers. Better customer insights support demand planning for peak seasons and promotions, reduce inventory levels and operational costs, and support customer segmentation for supply chain service level alignment. Students should be able to recognize that both types of software utilize data to streamline the process and enhance service.