Optimize Supplier Performance With Advanced Supply Base Management Strategies

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.  

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Enhanced Reliability with Effective Supply Chain Consulting

Supplier relations are a necessary part of business. Today's rapidly changing business needs to operate at a lower cost to compete and create its own core competencies to not only distinguish itself from competitors but also stand out in the market. Various activities in the supply chain management solutions involve the processes of turning the raw material using resources into finished product to be delivered to the customer. While technology is important and will help you do things you can’t do today, it may not deliver the results you need unless you also rethink your chain design and processes. 

Nowadays with the increased competition supply chain consulting firms have become in high demand which is not surprising with because of their numerous benefits. Using supply chain consultants can bring many benefits to your business. Acquiring the services of supply chain consulting firms will help you plan according to your business needs. The experienced and professional consultants will work with you on your business plan and specific company needs in order to minimize the time it takes to produce the product and get it delivered.

For a business that is having problems getting their supply chain running smoothly, sometimes the best solution is to bring in supply chain consultants. A qualified supply chain consultant can help ensure that products are being delivered to the correct locations and tracked properly. They work on reducing the inventory level and hence maximizing your productivity. Before choosing to use a supply chain consulting firm in to your organization, you need to look into is the experience of the consultants. It is essential that they have enough experience and knowledge about the market or industry in which you are operating and more importantly, they should know your business and your business needs.

With a supply chain consultant your business will have a new and fresh perspective to the situation as they will be able to provide unbiased and informed guidance on the various strengths and weaknesses.

They can help you maximize your business income and can often make the money you pay them a very worthwhile investment. Partner with a specialist consultant who also have effective supply chain solution and also offer advice on long-term strategies that will fit in with your overall business goals and plans. A supply chain consultancy may also be more knowledgeable in current industry best practice than you due to otheir constant immersion in the industry. They can offer ideas or innovations that you would never have considered or come across otherwise.

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Leveraging the Benefits of SCM Solutions

Supply chain management is a very complex area in an organization. Therefore, it has the chance to be a source of great efficiency and cost-savings gains. Organizations are realizing it today than before, that supply chain management excellence leads to a competitive edge over others, shareholder value and better consumer relationships. The business case for an improved supply chain management mandates a thorough review of the multiple source of potential benefits that comprises task productivity and SCM staff. Generally, the productivity enhance includes savings in sourcing, production planning and analysis, supplier management, production staff, production management, change for order processing and management, sales order entry, quality control and analysis, promotions management, fulfillment solutions, logistics and transportation.

Benefits of Supply Chain Management

When an organization implements reasonable supply chain management solutions then it can generate great value, such as:-

Enhanced supplier collaboration

Collaboration and dialogue to enhance social and environmental conditions that will strengthen ties with suppliers and might also help to minimize expenses resulting from maximized productivity and minimized resource consumption

Enhanced product quality

For numerous organizations, reasonable supply chain solutions assist in ensuring product quality and set up more sustainable products

Guaranteeing compliance with consumer demands and expectations

Today more and more organizations are witnessing demands from consumers to manufacture their products under various social and environmental circumstances

Eliminating the risks of negative PR

Efficient supply chain management program helps to secure an organization from negative PR resulting from social and environmental hazards in the supply chain. In worst cases, responsible supply chain management can function as a security body against possible human rights violation.

Today eminent brands specializing in reverse logistics introduced innovative supply chain solutions with which you can package products for store shelves or installation, ship products directly to the retailer, distributor or any other destination. Furthermore you can fill orders track orders from the inventory stage from your desktop. Other services include:

• Material Planning and Procurement
• Turnkey Materials
• Consigned Materials
• Domestic and Offshore Sourcing
• Supplier Qualification and Certification
• Vendor Managed Inventory
• Kan/Ban
• Lifecycle Management
• Web Based Inquiry and Reporting
  

That is not all. Efficient supply chain management can also help in attracting and maintaining employees. Today a good brand reputation is essential for organizations who are looking forward to attract and retain qualified employees. When an organization outsources, it is essential to signal the employees that it prioritizes social and environmental conditions.

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Understanding the Supply Chain Process

Supply chain is defined as “a system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer.” It is the supply chain activities that help to transform natural resources, raw materials, and components into finished goods, which is finally delivered to the end customer. Hence, supply chain consists of various phases such as sourcing, procurement, storage of raw materials, production planning and scheduling, logistics, warehousing, inventory, order fulfillment, customer service or returns management. Let’s look at each phase in detail to understand the reasons that make supply chain management a challenging task.

Sourcing

Sourcing is the process of finding, evaluating and engaging suppliers of raw materials or services. It is a very important business process since sourcing and procurement constitute one of the largest expenses. Sourcing involves activities such as market research, vendor evaluation, and negotiation of contracts.

Procurement

It is the acquisition of goods and services that satisfies the procurer’ needs in terms of quality, quantity, location and time that too at the best possible price.

Raw Materials Storage

It refers to the process of segregating, separating, and storing raw materials so that when the production process starts the raw materials are in good condition.

Production Planning and Scheduling

It refers to the process of planning, scheduling, and coordinating all manufacturing activities. It is managing and allocating resources, events, and processes for creating goods and services. Simply put, it is finding answers to questions such as what, when, where and how to produce.

Logistics

It is “the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements." It includes both forward and reverse logistics.

Warehousing

It refers to the storage of manufactured goods and products. It includes functions such as receipt, identification, and assembling, testing, verification and so on.

Inventory

It is a detailed itemized record of the finished but unsold goods.

Order Fulfillment

It refers to the complete process right from sales enquiry to the delivery of the product to the customer. The different steps in the order fulfillment process are product enquiry, sales quote, order configuration, order booking, order confirmation, invoicing, order planning, order processing, shipment, and delivery.

Returns Management

It refers to the effective management of the returned goods.

Supply chain thus covers all the movement of a product from the point of origin to the point of consumption. Hence effective supply chain management is essential if the company wants to enhance company revenue and profitability.

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