Organizations are striving to ensure effective supply chain management to drive cost savings, increase profitability, streamline operations, and improve customer experience. In order to significantly improve business performance, businesses must innovate and enhance operational efficiency with the help of supply chain management. By avoiding few procurement and purchase order mistakes, procurement managers can streamline warehousing and logistics processes, and optimize inventory.
Ignore Other Suppliers’- Big No
Organizations often stick to a handful of suppliers to deliver the materials and goods; thereby, losing the interest of other vendors in the market. Procurement managers must build a robust supplier relationship management framework irrespective of the order frequency or purchase quantity. Golden rule: ensuring supplier due diligence is the key to an effective supply chain management.
Never Disregard Vendor Advice
Suppliers are aware of the latest consumer and market trends, which is why procurement managers must never ignore or disregard the vendor’s opinion. By leveraging the vendor knowledge, organizations can enhance their product and service offerings as well as ensure a robust supply chain management. It is in the best interest of the business to listen to their vendors to gain a competitive edge in the market.
Don’t Be Shy – Negotiate!
Procurement managers often take the suppliers at face value and accept the quoted price without even negotiating. It is extremely essential to have a negotiation strategy in place while soliciting quotes from vendors. Without negotiating the prices, the organization cannot create cost-savings opportunities, which results in monetary losses. By negotiating with the suppliers and vendors, the procurement managers can assure them of repeat orders and validate the quality of their services.
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