How to find your Best Fit Suppliers and Why are they Important?
As industries grow, companies are in need of robust partnerships, streamlined supply chains, and clear strategic business plans. This rapid evolution has further led to the need for data-driven contracts, best fit suppliers, and a comprehensive understanding of changing market dynamics, business relationships, and the role of vendors and partners. Identifying suppliers is a crucial and challenging process, which requires efficiency, a time-consuming process, and in-depth insights into the expectations and requirements of the company. With the partnership and cooperation of the right suppliers, companies can significantly overcome various industry risks, keep pace with technological advancements, reduce costs, and stay ahead of competitors. There are various substantial benefits to identifying, selecting, and partnering with best fit suppliers, and as companies realize the value of these partners and vendors, the demand for the right processes, systems, and best practices increases. A robust partnership can also help companies maintain high quality products and services, overcome the impact of the constantly evolving market, gain insight into competitors’ strategies and practices, gain a comprehensive understanding of the market, identify and mitigate major risks, and significantly improve spend management and business.
What are the Five Ways to Identifying Best Fit Suppliers?
Strategic Alignment: When it comes to business in a growing industry, strategies, processes, and systems are the crux of growth, success, and profitability for all companies. With evolving industries, the need for robust systems arises significantly, and companies are encouraged to find the right partners, suppliers, and vendors to enable their strategic and sustainable growth. Best fit suppliers are partners that can enable sustainable growth, support profitability, and help companies achieve their strategic targets and business goals. To identify a reliable and supportive supplier, it helps to choose partners that share similar goals, ambitions, or strategic approaches. A shared perspective can lead to the development of a strategic partnership that is built on a strong foundation.
Clear Score Cards: Choosing suppliers is a complex, competitive, and difficult process, and ensuring clarity, data-driven choices, and objectivity can help efficacy and accuracy significantly. As companies grow and supply chains expand, the requirement, expectations, and KPIs established for potential and current partners may alter. However, lack of clarity, precision, or accuracy in establishing the necessary KPIs or factors for supplier score cards can inhibit the development of a strong relationship. Leveraging data analytics, experience, and clarity can significantly help the process, and enable companies to identify and choose their best fit suppliers. This ensures technical, strategic, and performative congruence between both parties.
Credibility: The foundation of any business relationship requires credibility, trust, and strategic alignment to evolve into a reliable, robust, and strong partnership in the future. When companies grow, they prefer moving forward with trustworthy vendors that have proven compliance, delivery, and profitability in past years. Therefore, when entering into a new partnership or attempting to identify a partner, companies must establish credibility and trustworthiness in the beginning. This can be achieved by maintaining open, transparent, and concise communication, or developing an honest and trustworthy bond with partners during the selection process. By maintaining clarity from the first step, companies enable a credible, viable, and sustainable relationship with potential partners.
Transparency: A lack of transparency, honesty, and clear communication within a company can lead to major challenges, shortcomings, and avoidable risks. Businesses are routinely encouraged to maintain transparency with stakeholders, between departments, or when developing new processes. Similarly, it is essential to maintain necessary transparency with suppliers and vendors that could potentially serve as business partners in the near future. When entering into new business relationships, it is imperative to understand how a potential partner functions, their ethics, strategic goals and targets, work environment, spend management, and expectation. Achieving this transparency significantly propels the process of identifying, selecting, and partnering with best fit suppliers.
Benchmarks: Attempting to meet industry standards or stay ahead of competitors in a challenging market, requires a comprehensive understanding of the benchmarks, level of products, strategic abilities, and supplier relationships within the market, and attempt to surpass it. As competition rises, benchmarking becomes an increasingly viable and reliable option, and it can help growing companies keep pace with leading industry players through data analytics and in-depth insights. Supplier benchmarking can significantly simplify the process of identifying, selecting, and working with the best fit suppliers by providing businesses with the necessary data required to make the right decisions.
The world has entered an era of innovation, pioneering, and evolution over the past decade due to technological and scientific advancements, unparalleled research in various fields and subjects, and the growth of collaborative, supportive, and sustainable relationships across industries. In the automotive manufacturing industry, suppliers and vendors play a crucial and undeniable role in procurement, production, distribution, and overall profitability. Struggling to keep pace with the evolving market, an industry leader with steadily declining profitability, growth trajectory, and success identified major shortcomings within the supplier identification and management system. To address these obstacles, the company chose to partner with SpendEdge and leverage our expertise in overcoming various supplier-related challenges and identifying best fit suppliers. By leveraging the various methods, data-based strategies, and in-depth insights recommended by our experts, the company closely assessed, interviewed, negotiated with, and chose their best fit suppliers in time to recover and keep pace with the most recent market trend. As electric vehicles began to take the market by storm, this automotive manufacturer identified and executed the right strategies with the help of a sustainable, supportive, and collaborative partnership that reduced costs and enabled growth.