Are you truly managing your supplier relationships? Do you became a boss to your supplier or the supplier is became your boss? Who manage who in term of business? In long run who is controlling who?

Use these tactics for managing supplier relationships:

Supplier Performance Evaluation :-

Ask a supplier’s representative how she thinks the supplier is performing and you may hear “Great!” But what if you think the supplier is performing poorly? Who is right? You can’t tell without agreed upon performance standards. For your strategic suppliers, agree upon what to measure (e.g., percentage of orders delivered by their due date) and what the goal is (e.g., 95% on-time deliveries).

Supplier Development :-

It’s logical that when you improve the capabilities of your company’s workforce, your company benefits. But even though suppliers now do work once done in-house, that logic hasn’t followed the work. Leading companies engage in supplier development - providing resources to improve their suppliers’ capabilities. This often involves training suppliers in methodologies such as Six Sigma or Lean, but really can be any collaboration that makes suppliers more capable of delivering benefit to your company.

So what is the better method to managed supplier? Do you this it’s possible to pass this burden to one officer to do it our you as an owner will take the action?

By: Paypal2u Bloggers