SRM systems must be flexible to take the output from any planning tool such as MRP output, Excel™, text files, and html formats as input to create requirements for a supplier. These requirements also provide various inputs to various suppliers with a variety of different formats. An SRM system should handle multiple forms of purchase orders, i.e., single, multiple, blanket, schedule release, etc.

In same cases, the PO or schedules are automatically updated with specific time frames that are defined differently. For example, a PO or shipment schedule release within two weeks may be considered firm and not changeable, following 4 weeks committed but subject to limited number of changes, beyond 6 weeks may be used for forecast only. This feature is actually a requirement in some industries such as automotive and electronics. It is considered a back-to-back EDI process from customer demand to supplier requirements. Because SRM systems is capable to work multiple communication formats, not all suppliers required to have EDI capabilities.

SRM systems keep a database of suppliers and customers and their relationships to one another. It contains a list of sellers and buyers, escalation process, historical purchases, active items, prices, volumes, deliveries, bar codes, and endless list of other information. These databases may be managed