The importance of closely managing your suppliers
For many companies, inefficient relationships with suppliers has become the norm.
Companies that lack supplier management capabilities are unable to realize the full value of their supply base.
They lack visibility in supplier relationships, and this impacts their ability to control costs, capitalise on new opportunities and react to their own customer’s needs. This can lead to costly disruptions, disputes and longer lead times.
The most effective way to manage complexity in supply chains is to develop the capacity to incorporate all your suppliers in standard fashion, in one system. Regular and constant communication is a vital aspect of managing your suppliers. You have to let them know if they could be doing better.
Supplier Management Systems
Supplier management systems provide clean data and accurate business intelligence to expose inadequacies in the supply chain and help spot potential gaps.
New supplier management technologies, such as Celtrino’s Digital TradeHub offering, are making innovation affordable and attainable for companies of all sizes.
Communication between buyer and supplier organizations is at the heart of supply chain transformation. The objective is to have a central point of reliable supplier information that is maintained by your suppliers and accessible throughout your organisation. Celtrino’s Supplier Management solution provides a communication forum for you to improve supplier relationships and focus on improvement. This allows you to monitor quality, compliance and safety and identify non-compliant suppliers.
Benefits of Supplier Management
- Enables you to establish better relationships with your suppliers to drive down costs, improve profit margins and enhance product range and availability. That means defining clear expectations of service and product quality and having a process to make sure they are upheld.
- Timely information sharing is a key success factor in well managed supplier relationships. Using technology to enhance supplier relationships creates mutually agreed performance standards to ensure a consistent and reliable service from suppliers.
- Effective partnership management reduces costs for both parties and maintains a mutual ‘long-term’ understanding between your business and your suppliers.
- Standardising supplier relationships addresses the challenge of maintaining product quality and understanding the costs and value provided by your suppliers.
- A supplier management process based on standard interactions is more effective in defining service expectations. It allows you to manage disruptive events, monitor quality and identify non-compliant suppliers.
Contact Celtrino today to begin your Supplier Management journey.