Getting best value from the procurement process means aligning it with your business objectives.
Many companies realise the importance of buyer-supplier relationships to help manage supply chain complexity. What they lack is visibility of the 'real' supply chain issues and scalable systems to address them.
The most effective way to manage complexity in supply chains is to develop the capacity to incorporate all your suppliers in standard fashion.
Supplier management that's based on standard interactions:
The larger the pool of suppliers you have, the greater the difficulty in managing them without the right solution. In this article, we'll discover how smarter supplier management can play a crucial role in your company's success.
Managing multiple suppliers
It’s critical that buyers gain an effective understanding of supply chain costs.
With an accurate assessment of supplier activity, buyers can begin to simplify the ordering process, minimise risks and create improvement plans.
Just carrying out normal supply chain interactions like sending orders and receiving invoices becomes way more complex as suppliers require different interactions.
It can be complicated to get suppliers to sign up to a single process.
To order goods effectively, buyers must know exactly what goods are possible to order. You must submit the order in a format the supplier can interpret, which allows them to respond easily.
You must be able to receive those goods and inform the supplier of any discrepancies.
When the supplier requests payment for those goods, you must confirm that it’s a valid request for goods that were received at the agreed price. Only then can the invoice be paid with confidence.
Any delays, confusion or dispute between the parties will increase costs and hassle for both the buyer and supplier, which can upset the relationship and even impact future business.
You need clear visibility of your suppliers, covering all aspects of their reliability and any risks associated with using them.
The objective is to make informed decisions about suppliers and appoint those that provide the best fit for your requirements.
Communication is absolutely necessary for many aspects of business. Maintaining good working relationships with suppliers can benefit your organisation in so many ways.
Having key processes automated and standardised in areas such as supplier qualification, product sourcing, ordering, delivery and payment, makes it easier for suppliers to comply with your internal process.
With a standardised approach to supplier management, it’s possible to maximise supply chain accuracy, identify supply problems and improve document and payment processing.
With clear cost advantages to both parties, the best way to seek continuous improvement is to gain a single unified view of supply chain activity.
TradeHub: Buy from Celtrino is a supplier portal that’s purpose built to simplify the process of dealing with multiple suppliers.
It does this by putting consistent and efficient processes in place to encourage best-practice supplier management to make trading easier for everyone
TradeHub:Buy streamlines the process of managing multiple suppliers by providing a suite of automated tools and workflows that give greater visibility and control of trading activities.
You define your trading requirements and help suppliers adapt by providing them with a range of standard workflows and consistent interactions.
Want to leverage an industry best-practice, robust and scalable suite of tools that simplify supplier management?