Overview of the Specialty Chemicals Industry
Over the last few years, the global specialty chemicals market has witnessed inferior profitability rates within a more competitive environment. With the advancing standards of living in many developing countries and swift maturity of new technologically advanced financial prudence, the center of gravity of the global specialty chemicals industry is shifting. Moreover, the constant demand for specialty chemicals from the construction segment for several residential projects and public infrastructure project contributes to the growth of the specialty chemicals industry, globally.
Vendor Management in Procurement
Most businesses rely on vendors to provide the goods and services that enable them to successfully run the business; and normally, the larger the company, the higher is the preference for vendor outsourcing. Vendor management in procurement is about streamlining the process for increased efficiencies and managing vendor relationships to assure that the deals made are mutually profitable for both parties. Vendor management in procurement is vital for the economic well-being of the firm and vendor management best practices must be employed in an organization to streamline activities.
Vendor Management Best Practices
Following vendor management best practices to establish a mutually strong relationship with your vendors will increase your company’s overall performance in the marketplace.
- Build and maintain a relationship – Get to know each other’s needs, expectations, and maintain a strong relationship.
- Strategic plan – Set your desired outcomes and goals and assure alignment with the service provider.
- Area of expertise – Look for a firm that understands your industry or line of business.
- Balance Value with Cost and Quality – Strike a balance between value, cost and quality, while opting for the vendors.
SpendEdge is a global strategic partner for over 500+ fortune firms and other leading organizations across industries. We cover a wide spectrum of businesses starting from pharmaceutical and life sciences to transportation with expertise in supply market intelligence, spend analysis and benchmarking, supply chain risk assessment, and category management.
Continue reading to know how vendor management best practices helped a specialty chemicals buyer or request a free proposal.