|
Developing effective business relationships with suppliers is not easy, particularly when suppliers are situated in various parts of the globe. Purchasing and supply managers who want to reduce costs and leverage value from their supply base are increasingly focusing on a base strategy to determine the optimal number of suppliers. To build customer value and promote profit, critical supply chain capabilities need to be integrated with core business competencies. Making improvements in supplier selection and relationship management can be an advantage in today's competitive marketplace; as such improvements result in better products, reduced costs, stronger supplier partnerships and more efficient business processes. Supplier base management is a systematic, holistic, strategic approach to planning, developing, and managing the supplier base. While the supplier base needs to be carefully and continuously managed, it is more important for the supplier base to be managed strategically, not tactically. It must be managed with the perspective that the supplier base, like the business environment in which it operates, is dynamic and ever changing. As enterprise must understand that managing a supplier base does not always mean supplier reductions. Supply base management plays a fundamental part for enterprises since it improves global supply chain liquidity and helps maintain a record. Supply base management allows the identification of new suppliers, evaluation of existing suppliers, improve supplier performance and supplier portfolio. It is possible to measure and develop supplier performance in a proactive way by mixing and collaborating tools. Consequently there is a reduction in risk and also ensuring that the suppliers are in the best in class. While many strategic quality approaches and supply base management tools are positively correlated with firm performance, our results show that quality management and supply base management techniques and tools must be implemented conjointly to achieve superior financial and business performance. Increased focus on supply base management makes sense as the business environment it is increasingly complex and volatile. The right supply chain solutions will assure that your products are always cost competitive, taking complete advantage of global economic trends. In many cases, managing a planning and procurement department and maintaining communication with your suppliers requires a massive commitment of personnel, management time, and money that can drive your production overhead through the roof. Your service provider must be abreast of market changes and be capable of responding rapidly with new options. Know more on - Rack and stack
Related Articles -
Supply base management, global supply chain, supply chain solutions, Rack and stack,
|
