Which management approach focuses on keeping suppliers satisfied?

The correct answer is Supplier Relationship Management (SRM), which focuses on developing and maintaining good relationships with suppliers to enhance the overall supply chain performance. SRM emphasizes the importance of collaboration and communication between a business and its suppliers, which is critical for ensuring quality, availability, and efficiency in the procurement process. By keeping suppliers satisfied, organizations can foster loyalty, ensure better pricing, and improve service levels, all of which contribute to sustained competitive advantages and operational effectiveness.

In contrast, other options such as Partner Relationship Management (PRM) concern collaboration with business partners rather than just suppliers, emphasizing joint strategies and relationship development with broader partners in the market. Employee Relationship Management (ERM) focuses on managing interactions and improving relationships with employees, which is not relevant in the context of supplier management. Sales Management Customer Relationship Management (CRM) deals with managing interactions with customers and focusing on sales rather than supplier relations. Thus, SRM distinctly addresses the goal of keeping suppliers satisfied and aligned with the organization's objectives.