Supplier relationship management (SRM) for Dynamics Ax is a comprehensive approach to managing an enterprise's interactions with organisations that supply the goods and services it uses. The goal of SRM is to streamline and improve the processes between an enterprise and its suppliers in the same way that customer relationship management (CRM) is intended to streamline and improve processes between an enterprise and its customers.

SRM for Dynamics Ax was developed by Axnosis, and is integrated with Microsoft Dynamics Ax. SRM allows for the improvement of collaborative relationships with suppliers. Independent studies have shown that companies with good supplier relationships outperform others. In the long run, embracing suppliers and building sustainable, workable relationships is far more profitable than pressuring individual suppliers for marginal cost reductions.

The components of SRM include, among others:

• Purchase and stores requisitions
• Commitment accounting
• Request for quotations
• Contract management
• Vendor management
• Vendor reconciliations
• Ax workflow

SRM for Dynamics Ax has been developed as a means to improve the procurement functions in an organisation. As part of this value-added offering, users are now able to communicate their requirements electronically. Linked to workflow, organisations can translate their authorisation rules into an electronic hierarchy which is used to approve transactions. The ability to ultimately check requests against budgets enforces compliance with spending limits.

Negotiating with suppliers is a crucial step in the procurement cycle. With he RFQ (request for quote) module in Dynamics Ax, properly qualified suppliers can be invited to submit proposals for provision of materials or services according to outlined requirements. An automated analysis of bids received enables the winning supplier to be selected based on pre-defined criteria. All relevant documentation (invitation to bid, congratulatory letters etc.) is quickly and easily generated by the system.