1. Effectively manage the expanding supplier base.
The supplier base of enterprises is constantly expanding, which is the result of the joint action of many factors. For example, the increasingly globalized business process provides a channel to contact global suppliers, which increases the complexity of the supply chain. With more and more suppliers cooperating with enterprises, the whole life cycle management of suppliers becomes more and more difficult. Having a well-structured supplier management process will make it easy for enterprises to manage many suppliers.
2. Realize cost saving and quality control.
Strong supplier management practices enable enterprises to identify cost-saving opportunities in the supply chain and review the quality of supplier products. This directly affects and promotes the bottom line of the company's income statement.
3. Improve the supply transparency of enterprises.
When you have a suitable supplier management system, you can simplify valuable information and data related to the supplier life cycle. Enterprises have a more thorough understanding of the number and types of participating suppliers and their performance, which is helpful to identify areas that need improvement and design strategies to further improve supplier performance.
4. Track the compliance of relevant parameters.
Each supplier must meet specific parameter settings to ensure that they meet the requirements of the enterprise. By using the supplier management system, you can evaluate the supplier's compliance with the set parameters, determine the scope of improvement and get the maximum value.
5. Evaluate supplier performance
This may be one of the basic benefits of supplier management. You need to know the performance of suppliers, because the performance of enterprises mainly depends on suppliers. Supplier performance management not only allows you to evaluate the compliance of suppliers, but also allows you to have a deep understanding of their performance. Supplier management includes creating and using various KPIs to measure supplier performance, and you can evaluate the value created by suppliers.
6. Establish development projects to support suppliers.
After completing the supplier evaluation and identifying areas that need improvement, supplier management can help you design development projects that support suppliers, especially those that meet long-term/critical needs and improve supplier performance.
7, the application of supplier relationship management
The relationship with suppliers is very beneficial to your enterprise. When you cooperate with your suppliers and involve them in the process of deciding to realize the relevant requirements, you have established a long-term trust-based relationship, which can play a role in the future. Cooperate with suppliers to make them more willing to understand your business needs and consider strategies according to the enterprise situation.
8. Assess and reduce supplier risks.
Identifying and reducing supplier risks is another obvious key advantage for enterprises to carry out efficient supplier management. With the complexity of the supply chain and the resulting supplier relationship, the possibility of harmful supplier risks will also increase. Supplier management helps to identify and evaluate the impact of supplier risks and formulate appropriate risk mitigation measures.
A good tool for supplier management
8Manage SRM supplier management software provides automatic workflow for the whole supplier life cycle, including supplier self-registration, qualification certification, classification, employment, continuous management and strategic relationship management.
○ Manage the complete supplier life cycle
With the 8Manage supplier management solution, you can master all the elements of the supplier management process, find problems when they occur, manage approvals and changes in real time, and ensure appropriate supplier performance and quality standards through consistent audits and reviews.
○ Collaborate with your suppliers in real time.
8Manage provides a recording mechanism for enterprises to record their communication and commitment with each supplier, and enterprises can view the records at any time. Clearly and conveniently recording what has been discussed and promised can strengthen the corporate memory of everyone in the company and ensure that words and deeds are consistent.
8Manage provides social sharing, chatting, forums and other communication tools for outsourcing activities, and also allows employees and outsourcers to form related teams to work and discuss together as team members.
○ Digitization and automation of the whole enterprise supply chain can be realized on one platform.
When managing SRM in 8, you can:
-Understand the participation of suppliers in all aspects.
-Manage and control all elements of supplier interaction.
-Let all departments know and contact suppliers and partners in the whole supply chain.
-Ensure supplier compliance and reduce risks.