Supplier Management Best Practices
There have been some recent changes and trends in the world economy that have created a greater need for having best in class systems for supplier management. For example, the Increase number of low cost suppliers in new global regions, and the rapid fluctuations in commodity and market pricing are just some of the factors that have created even greater challenges.
Many companies have discovered how to save time and improve quality as a result of using technology to help automate supplier communication and management. Helping companies achieve the greatest levels of performance since 1995, CEBOS has observed many techniques and best practices using technology to effectively communicate with and manage suppliers.
Some of your opportunities might be:
- Suppliers perform better when they know they are consistently being watched. After all, it is human nature to please others who are looking on. Technology that automatically compiles and publishes on-line scorecards based on quality, delivery and pricing data for the supplier to review, helps ensure a heightened awareness of accountability and motivation.
- If communication is not quick and easy for the supplier, there is a higher likelihood that it will not happen. Suppliers should be prompted by email triggers when information is available and then have a convenient way to:
- Request Deviations
- Access the latest specifications
- Answer assigned corrective action tasks
- Update project status on product launch initiatives
- Enter validation data prior to shipping
- On-time delivery performance data tracking can be contentious unless a fair and flexible delivery window and exception flagging mechanism exists.
- For organizations with multiple sites, it is often the case where different business systems are used for supplier transactions and it is difficult to normalize the data and consolidate it for analysis and reporting purposes.
- It is imperative that Suppliers are always working with the latest and greatest drawing and specifications