Supplier Value Management Software Supports Suppliers As Business Partners

Companies need software applications to manage their sourcing, contracting, purchasing, invoicing, and supplier management processes. To date, there has not been a standard label for these software apps that's analogous to the label of customer relationship management (CRM) for sales, marketing, and customer service apps. Forrester's new label for buy-side applications is supplier value management (SVM). This name recognizes that firms increasingly view suppliers as key partners that contribute as much to business success as employees — and particularly so in this time of pandemic and recession. "Supplier value management" acknowledges and reinforces the principle that suppliers are a critical source of business value and not just a category of business spending that needs to be reduced.