- All members benefit equally. To motivate suppliers to help reduce costs and increase sales, successful companies reward them with a fair share of savings or profits.
- A strong communication system. Whether it's notifications via e-mail, visual clues or even verbal cues, a strong communication system is must.
- Long-term commitment. Building relationships for the long haul means not abandoning a supplier because another company is slightly cheaper.
- Collaboration. Getting input from suppliers on new products, shipping, pricing, etc., reduces waste done the road.
Action Steps
The best contacts and resources to help you get it done
Choose the right partners
Which suppliers best serve your needs? Narrowing your list is the first step in successful supply-chain management.I recommend: Get educated with articles and Web seminars from the Institute for Supply Management. Find suppliers via a directory from Supply & Demand Chain Executive Magazine.
Collaborate and communicate
Set up systems to ensure collaboration and communication. That means building in processes such as regular meetings, sign-off requirements, collaborative design systems, real-time inventory tracking, and even an onsite rep from your supplier.I recommend: Use a tool from Industry Week Magazine to benchmark your supply-chain model against the best-managed plants in North America and copy what they do.
Focus on continuous improvement
Setting goals (i.e., cost reductions, improved delivery time, decreased warranty costs) and tracking performance will let you know if suppliers are continuing to bring benefit to your company.I recommend: Choose how your supply chain will be measured. A variety of metrics exist – find them in the book Streamlined: 14 Principles for Building and Managing The Lean Supply Chain by Mandyam M. Srinivasan.
Tips & Tactics
Helpful advice for making the most of this Guide
- Get outside help if you need it or don't have the time to manage your supply chain. Software vendors often provide consulting services along with their products.
- Be aware that using overseas suppliers can have hidden complications such as added transportation costs, political disruptions, or varying compliance rules.
- Even while focusing on ongoing continuous improvement via metrics and benchmarking, choose "spot projects" for improvement. For example, some manufacturers have built such trusting relationships with their suppliers that they no longer inspect incoming materials, which decreases costs and improves cycle times.
the Supply Chain Management page at Business.com
Software for Transportation Rating
Know what each shipment will cost, down to the penny, and how long it will take to get there. Learn more about SMC³ transportation pricing software.
LTL Base Rates | Density Rating | LTL Bidding | Parcel Rating
www.smc3.com
Know what each shipment will cost, down to the penny, and how long it will take to get there. Learn more about SMC³ transportation pricing software.
LTL Base Rates | Density Rating | LTL Bidding | Parcel Rating
www.smc3.com
Supply Chain Management Software Directory
Compare supply chain management software using Capterra's free, comprehensive directory.
Capterra.com
Compare supply chain management software using Capterra's free, comprehensive directory.
Capterra.com
Supply Chain Software
Supply chain software to help decision makers with network design, transportation scheduling and vehicle routing.
SC Network Design | Green Network | Scheduling | Vehicle Routing
www.profitpt.com
Supply chain software to help decision makers with network design, transportation scheduling and vehicle routing.
SC Network Design | Green Network | Scheduling | Vehicle Routing
www.profitpt.com
Find SCM Software for 2010
Compare Supply Chain Management software for free, and find the software that's right for your company in 2010!
SCM.TechnologyEvaluation.com
Compare Supply Chain Management software for free, and find the software that's right for your company in 2010!
SCM.TechnologyEvaluation.com
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