Enhancing collaboration through effective Relationship Management

This report investigates and compares the differences in Relationship Management strategies, technologies and outcomes between the US public sector and the global private sector. It also identifies a major gap between customers and suppliers in ‘the things that matter’. Each appears to be making assumptions about areas of value and this is impeding a greater focus on value-based outcomes.

In recent decades, it is widely acknowledged that the combined forces of globalization, consumerism and advances in technology have caused relationships to become notably more transactional. 

The relentless pursuit of efficiency and cost-effectiveness meant that many long-term agreements were also driven by price that prioritized immediate financial gains over sustained mutual value.

This approach has often led to a degradation of trust, challenges to collaborative innovation, sub-optimal outcomes and greater vulnerability to market volatility.
This makes it necessary to reassess and rebalance relationship strategies, which acknowledge the limitations of a purely transactional focus. Recognizing the need for greater resilience, enhanced innovation, and deeper customer engagement, businesses are gradually reviewing and reviving their relational strategies. This report confirms that, for many, this includes the development of a formal Supplier Relationship Management (SRM) program.