Understanding the Role of Supplier Relationship Management in E-Commerce Inventory Optimization

This qualitative study explores the role of Supplier Relationship Management (SRM) in optimizing inventory within the context of e-commerce. Through semi-structured interviews with e-commerce managers and supply chain experts, the study investigates the strategies, challenges, and outcomes associated with SRM practices. Key findings highlight the critical importance of strategic partnerships with suppliers, emphasizing trust, transparency, and goal alignment as foundational elements for effective SRM. Participants underscored the transformative impact of technological advancements, including advanced analytics and blockchain technology, in enhancing supply chain visibility, optimizing inventory levels, and improving operational agility. However, the study also identifies challenges in SRM implementation, such as cultural differences, regulatory compliance, and geographical distances, which require proactive management strategies. Innovation emerges as a key driver of competitive advantage in e-commerce, facilitated through collaborative R&D initiatives and co-innovation with suppliers. Strategic alignment with organizational goals is crucial for integrating SRM practices with broader business objectives, including operational efficiency and risk mitigation. Recommendations include adopting integrated SRM strategies that leverage technological innovations while maintaining a focus on relationship-building and sustainability. Enhanced supplier performance monitoring, proactive risk management, and the integration of sustainable practices are proposed to strengthen supplier relationships and enhance supply chain resilience. By addressing these insights, e-commerce firms can optimize inventory management, drive innovation, and achieve sustainable growth in the digital economy.