Create KPI to measure supplier performance
KPI is very important in the process of managing supplier life cycle. KPI enables supplier performance measurement to evaluate value creation and identify problem areas.
Effective supplier relationship management
Ensure that your business objectives are accurately communicated to suppliers. After understanding the objectives, suppliers can make suggestions to bring the greatest value to your business needs. Involve suppliers in the decision-making process and take advantage of synergies. This strategy helps to establish a cooperative relationship with suppliers. Supplier relationship management is the key to get the maximum value from suppliers and make your supply chain efficient.
Evaluate supplier risks and determine mitigation measures.
This is one of the most important strategies for a well-run supplier management process. It is very important to identify supplier risks that affect the supply chain, reduce costs and damage performance. The first risks to be concerned include financial risks, operational risks, data security risks and regulatory risks. Analyze the impact of these risks on supplier management and formulate measures to help reduce these risks.
Implement effective supplier information management
Effective supplier information management process and supplier information management system can not only maximize your business needs, but also bring you competitive advantages. It enables you to achieve cost savings by improving the quality of goods and services, and cost savings determine the bottom line.