1.13A THE IMPORTANCE OF ALIGNED SUPPLIERS
The strength of supplier relationships can often be the difference between a high performing business and an average performing one.
When your suppliers are aligned with your goals and targets, and they understand your vision, you are able to collaborate in a way that is beneficial for both parties. Both of your businesses can work towards improved sales and market share – everyone wins.
We often see companies attempt to build the most efficient supply chain, regardless of whether their market strategy is to compete on price. However, optimising cost and inventory may come at the expense of lead-times, flexibility, quality and risk.
Your supply chain needs to compete in the same way your company does. Supplier agreements cannot be measured in absolutes or designed in isolation of the business strategy.
From manufacturers through to business services, office supplies, utilities and logistics, almost no modern business can do without a supply chain of indirect products and services. Therefore a variety of suppliers is essential to almost every working organisation.
For most companies, it is important to establish strong, mutually-beneficial, long-term relationships with suppliers. Strategic supplier relationship management is a critical step in improving performance across the supply chain, generating greater cost efficiency and enabling the business to grow and develop.
1.13B BENEFITS OF STRONG SUPPLIER RELATIONSHIPS
1.13C SOLID SUPPLIER AGREEMENT
- The strength of supplier relationships can often be the difference between a high performing business and an average one.
- A solid supplier agreement will generate greater cost efficiency enabling the business to grow and develop.
- An agreement will create a pathway for your business to grow whilst securing future pricing.
- Supplier agreements cannot be measured in absolutes or designed in isolation of the business strategy.
- Seek professional advice when putting together your agreements.