Supply Chain Management and Your Vendor Base
How does your purchasing department currently manage its vendor base? For instance, does your enterprise rely upon enterprise mobility solutions that empower your purchasing department to better manage incoming shipments of raw materials and finished goods? Or, do you handcuff your purchasing department by asking them to rely upon manual vendor management practices, ones that aren’t live and can’t possibly give your company the kind of up-to-the-minute data it needs to manage its inventory, its vendor’s deliveries, and most importantly, its supply chain? Granted, these three questions are set up to lead you, the reader, into the eventual conclusion that manual processes are problematic and costly, while enterprise mobility solutions are accurate and timely. Well, the simple fact is, manual processes are costly. They are problematic and time-consuming and most importantly, they do make it extremely difficult to manage a vendor base in today’s fast paced business environment. Put differently, if your company is using manual processes, but your competitors are using handheld rugged computers, then whom do you think is better able to manage its supply chain? Bottom line, your company needs to do away with manual processes.
Now is the Time to Save Money!
Are there any upsides to the recent global recession? You’re likely wondering what possible benefits can come out of a decline in customer demand. However, while your business may have suffered a decline in revenues, it’s also a guarantee that your purchasing department has gained the upper hand with its vendors. Now is the time to make your vendors work harder for your business. Now is the time to lower your company’s cost structure by lowering your pricing and per-unit freight costs on incoming shipments. After all, your vendors need good customers. They need companies that pay their bills, commit to their purchase volumes, and most importantly, they need customers who don’t make mistakes on orders. No vendor wants to be burdened by a customer that either buys too much, and wants to return their overstocked product, or doesn’t purchase enough, and demands faster turn times on the balances.
“Who are your vendors more likely to offer the best service to; your company with its manual processes and costly purchasing mistakes, or your competitor who is constantly on the ball and able to provide accurate demand forecasts because of their enterprise mobility platform?”
Your purchasing department now has the time to set the stage for lower costs. They can take advantage of this lull in customer demand by incentivizing their vendors to provide better offers. Once the economy rebounds, your company will be in a fantastic position to capitalize. However, none of this is possible if you’ve asked your purchasing department to manage its vendor base with excel spreadsheets. None of this is possible if your purchasing department isn’t empowered with a solid enterprise mobility solution. Give them the tools they need to succeed and they will reduce your supply chain costs.