What do suppliers expect

Saves Your Company Money In the long run, your business will be able to save money. You have to: Settle your bills on time. Alot enough time for placing orders. This is often a result of poor planning and inventory management, so make sure that you deal with those issues as well. Be considerate to their sales representatives. Be respectful and treat them well because they represent your suppliers.

Be transparent. Any issues you may have must be escalated properly and promptly. Everything Goes Down: what should you expect for business uptime?

Enter your text here. Login Lost Password? Reset Password. It is important to manage these relationships so a business can ensure the efficient supply of products and services for the company. Creating and maintaining a Supplier Management Process that explicitly outlines the route to take to manage a supplier is important so that a company can choose the right suppliers that suit the business needs.

The Supplier Management Process goes further than just choosing the right vendor, it outlines the process of building trust with suppliers and improving on the services provided by them. Managing relationships is a huge part of any department but it is more so for suppliers as these are entities who are not internal to the company.

Suppliers exist outside of the business meaning that the company needs to be careful with the information that it provides to the supplier. The business must strike the right balance as the supplier needs to feel like the business values them before they will provide excellent service seamlessly and go above and beyond the normal activities to impress the business. Every penny saved in efficient supplier management goes straight to the profit line.

The savings in time as well as cost should not be underestimated. Having a process, following best practice, and using spend management software , such as PLANERGY, will help you streamline your supplier relationship management, give your employees clear guidelines for purchasing, and allow them to spend more time on their key responsibilities, while giving your organization the insights necessary to continue to review and improve the value of your suppliers to your organization.

We hope these tips improve your SRM system and make your overall business more efficient. If we missed any strategies your organization uses for SRM, please share your strategies in the comments section to help make this an even more useful resource. Enter your email below to begin the process of setting up a meeting with one of our product specialists. Krause highlighted two approaches to the supplier management process: Reactive Approach — Where companies start managing the supplier relationships only when unpleasant situations with suppliers occur, and try to figure out how to improve the performance of unreliable suppliers.

This approach consumes quite a lot of time and resources, which could have been better spent on more important business processes. Strategic approach — Where supplier relationship management starts even before an agreement with supplier is signed, in order to ensure the competitive advantage of the company in the long run. This is a forward-focused approach with a strategic plan, which can lead to a successful relationship even in the early stages.

They generally offer the lowest prices because they are selling in large quantities, and are reluctant to work with smaller orders. The prices might be higher than those of wholesalers, but they handle small orders from a wide range of manufacturers over a relatively short time period. Import Sources — Domestic importers can work like domestic wholesalers and sell foreign goods to businesses.

Your suppliers are not just vendors They are your partners, and this partnership should be based not only on financial transactions, but also on mutual trust and loyalty.

Technology makes supplier relationship management simple Invest in supplier management software to keep track of information about your suppliers in one place. Relationships should be strong and deep Make sure to maintain strong and regular communication with each of your suppliers. Price is what you pay, value is what you get Nothing is better for growing your profits than getting a quality service or materials for the right price. Detailed agreements make supplier relationships easier If you are buying from a vendor on a regular basis, Supplier Relationship Agreements with a strong contract management process is a must.

Evaluate the risks Always evaluate the risks of dealing with a supplier, and in particular a new supplier, especially if you have a complex supply chain.

Not all suppliers are made equal, think global — act local As the world becomes ever more connected, we increasingly find ourselves dealing with vendors that are further afield, either across the country or across the globe. Most importantly — Get everyone onboard Having a Supplier Relationship Management Process is important but getting everyone in your organization on board is critical.

Spend Management Visibility: Not having everyone on board means missing data, and therefore poor spend visibility. Continuously look for ways to minimize waste, emissions and discharge from operations Follow the Hess Rules.

Quality Quality is essential to doing business with Hess. Preventing defects - our standard practice is to trust suppliers to provide us with defect-free products. Built-in quality - the best way to assure quality is to build quality into products systematically. That means designing products and processes to maximize quality. Reliable delivery - At the very least, suppliers must deliver products on schedule and provide materials at the quantities requested. Flexibility in production and delivery — Suppliers must be able to adjust to changes in production and delivery requirements.

We target zero inventory and work with suppliers who can manage our material needs and deliver goods directly to the job site on time.