Tag: supplier management

Supplier management

Supplier Management Best Practices: An Easy Guide for Businesses

Business needs have changed a lot over the last few years, resulting in shorter product lifecycles and wider market swings. As a result, supplier collaboration has emerged as one of the top strategies to elevate the performance of businesses to the next level. Suppliers of today possess detailed insights into market changes and have their fingers on the pulse of innovation, which will prove beneficial in today’s hyperkinetic business environment. But to gain value from suppliers, businesses need to understand how to better manage suppliers. Below, you will find the supplier management best practices for 2019 and beyond.

Supplier management best practices #1: Segment suppliers effectively

Businesses usually segment their suppliers based on their impact on the supply chain and supply market complexity. They classify suppliers into strategic, bottleneck, leverage and routine suppliers which many a time may lead to poor return on investments (ROI). By incorporating a third parameter that can help measure the compatibility between the organization and the supplier, companies can better manage their suppliers and achieve set objectives.  Also, this will help them to improve supplier relationship management, develop supplier-specific strategies, and improve collaborations with them.

Supplier management best practices #2: Develop a governance model

After segmenting suppliers, companies should develop a governance model that can track the relationship with suppliers from the beginning. This will provide clarity to businesses in understanding – who is in charge of managing the relationship with suppliers and when should a senior executive be involved? It requires resources from both buyer and supplier companies to ensure that the performance meets business objectives. In the case of strategic suppliers, the degree of governance will be more than transactional suppliers.

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Supplier Management Best Practices: An Easy Guide for Businesses

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4 Effective Strategies to Make Strides in Supplier Relationship Management

Supplier relationship management (SRM) is an integrated approach that addresses and provides benefits for both the buyer and seller sides. It should be noted that not all suppliers are the same, so not all customer-supplier relationships should be dealt with through a single strategy. The typical goal of supplier relationship management is to streamline and improve processes between a buyer and its suppliers. It is all about developing a mutually beneficially relationship with suppliers, especially those deemed as most strategic to the brand, to promote quality, efficiency, and innovation among several other benefits. As with many procurement activities, at the most basic level, supplier relationship management can be used to reduce both prices paid and costs to the organization. Developing appropriate styles of interaction can also make it is possible to save money. The key to developing an effective supplier relationship management approach is a well-understood supply base.

Strategies for better supplier relationship management

Leverage technology

Investing in a good supplier management software helps companies keep track of information about their suppliers in one place. Companies can also take one step further and install an advanced purchase order management software which is useful in creating, processing, and tracking purchase orders with the suppliers.

Ensure timely payments

Fulfillment of payments on time is a vital element of an effective supplier relationship management. This is also a critical step in ensuring that the company’s valuable suppliers are not lost. Timely payments also facilitate companies to establish their credibility and reliability as a customer to their suppliers. Just like companies like to receive prompt delivery of goods and services from the suppliers, the suppliers expect prompt payments. In case companies are unable to make payment on the date agreed, then they must inform the supplier as soon as possible with the date on which they can expect the payment.

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Make detailed agreements

Supplier relationship management is a non-negotiable in the case of companies that buy from a vendor on a regular basis. Begin by listing out what both parties expect from the partnership such as item or service description, price, delivery terms, payment terms, and communications. Then have both parties sign it. The complexity of this document depends on the business requirements. A well-documented supplier relationship agreement reduces the possibility of confusion or disputes and paving way for better supplier relationship management.

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4 Vendor Management Best Practices That You Must Know

Vendor management is gradually becoming one of the core competencies for successful enterprises. It is a critical element for businesses to build a relationship with their suppliers and service providers and will consequently strengthen their businesses. Furthermore, selecting the right vendors is often critical to any company’s success. Bad vendor management systems and disorganized relationships can result in performance interruptions and even ruined reputations. Therefore, the need to adopt vendor management best practices comes into the picture. Let’s examine some of the vendor management best practices that will help organizations create a mutually beneficial relationship and advance the organization’s goals. 

 Vendor Management Best Practices

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#1. Carefully examine the options

Some industries might have only a handful of vendors to choose from. However, in most cases, there is no shortage of market competition and it is important for companies to do their homework before making their decision. Businesses must first assess their needs and narrow down potential vendors based on the pertinent criteria. Carefully examining the options is one of the vital vendor management best practices for companies. Some companies may require multiple vendors to fulfill their needs, but consolidation reduces confusion and will likely allow for cost savings.
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#2. Balance commitment and competition

One of the key aims of having a vendor management system is to gain the commitment of the vendors to assist and support the business operations. On the other hand, the vendor tends to expect a certain level of commitment from the company. It does not enterprises must blindly accept the prices they set. One of the key vendor management best practices is to gain competitive bids.

#3. Provide insights on current and future trends

Vendors and organizations depend on each other to thrive in the market. Therefore, providing insights on current and future trends is one of the key vendor management best practices. Companies must analyze their vendors’ experience with other companies, have an in-depth knowledge of the industry, and use these as inputs while strategizing and optimizing the vendor management system. Moreover, vendors manage multiple clients and companies haven’t built rapport with their point of contact, chances are that they could miss out on new developments. As vendors evolve and add more services, capabilities, or offerings organizations have to be aware of what’s new in the market. Vendors must be informed that the company wants to be included on these types of announcements.request proposal

#4. Share information and priorities

One of the most important vendor management best practices is to share information and priorities with the vendors. Vendor management best practices provide only the necessary information that is required for the vendor to serve your needs better. It may include new product launches, limited forecast information, and changes in design and expansion or relocation changes.


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Supplier Management Process: Steps to Select the Right Supplier

Every business organization purchases goods and services from suppliers or third parties. The output of one organization affects various aspects of other organizations’ goods and services. Therefore, it is very important to analyze how an organization establishes, engages, communicates and manages with its suppliers. However, although supplier management is an important factor, many organizations regularly suffer due to the poor performance of their supplier and their unpredictable behavior. Fortunately, there is something called the supplier management process that every organization should follow to improve the overall performance of their suppliers. Supplier management solutions ensure that you have a good bunch of suppliers for your business. Therefore, it becomes very crucial that you select the right suppliers for your business requirements. This can, in turn, ensure that you are delivering your products and services on time and in compliance with your quality standards and at the right price.

In this article, we have talked about a few important steps that you must follow to select the right supplier who can improve the overall performance of your business. BContact USut before talking about those steps, let’s understand a bit about supplier management process. (more…)

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Top Suppliers of Travel Management Services

The ‘Wanderlust’ fever is on a rise, especially among the millennials. This is one of the main factors that has fueled the growth of the travel and tourism industry. The travel management sector is poised for rapid growth in the years to come due to positive trends in global macroeconomic factors and growing business activities across emerging markets. The major regions which contribute to the increasing demand for travel management services are Europe, North America, China, Japan, Southeast Asia. (Source: Global Travel Management Procurement Report)

Today, several providers of travel management services are offering sustainable travel options and one-stop solutions to reduce the dependence of buyers on different category stakeholders such as visa processing, local transport, and destination management service providers. This is leading to the reduction in management effort for category buyers, which, in turn, drives the demand for TMCs in the market. Here is the list of the top suppliers in the travel management sector:Request Demo_SE

American Express Global Business Travel

American Express Global Business Travel (GBT) is a multinational travel and meetings program management company. The company was founded in the year 1850 and is headquartered in the US. They operate in over 100 countries and employ around 55,000 employees. They provide end-to-end corporate travel and meetings program management through a variety of solutions that serve both the client company and the traveler.

Carlson Wagonlit Travel

Tracing its origins back to the 1870s’ invention of rail sleeping cars, Carlson Wagonlit Travel is a privately held travel management company that is wholly owned by Carlson Companies. The company is headquartered in Paris and has over 18,000 employees across nearly 150 countries. They are known for providing travelers with a consumer-grade travel experience by combining innovative technologies and their experience. In 2016, the company posted a total transaction volume of US$ 23 billion.

BCD Group

BCD Group was founded in the year 1975 by John A. Fentener van Vlissingen. The company consists of four subsidiaries, each one successful in its own domain. BCD covers 30 owned operations and partners and affiliates in 109 countries throughout the world. In 2017, the company generated total sales of US$ 27.9 billion, including US$ 10.4 billion in partner sales.

Booking Holdings Inc.

The company was previously known as Priceline group. The new name Booking Holdings reflects their global size and scale more accurately. There are six brands under this company namely- Booking.com, Priceline, Kayak, Agoda, Rentalcars.com, and OpenTable. The company is headquartered in Connecticut, US. Here’s an interesting fact – Bookings Holdings is the world’s seventh largest internet company in terms of revenue.

Expedia Inc.

The Expedia group is global travel company. The company’s websites are primarily travel fare aggregators and travel metasearch engines. Their holdings include –  Hotels.com,Expedia.com, CarRentals.com, Hotwire.com, Trivago, Venere.com, Travelocity, Orbitz, and HomeAway. In the Q1 of 2018, the company’s gross booking has amounted to a whopping $92 billion.


Get in-depth insights on the supply market for travel management services along with procurement best practices, supply market trends, pricing insights, category management, and procurement challenges in SpendEdge’s report on the global travel management services market.

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Procurement Challenges Troubling Executives in the Sheet Metal Fabrication Equipment Market

The modern wonders of the world are all possible due to advances in construction technology and material science. Although technological advancement is growing at an unprecedented rate, it’s the small and simple things that still matter. Sheet metal fabrication is still as important in construction and manufacturing as it was decades ago. Sheet metal fabrication equipment is used to cut and provide shapes to sheet metal components and also involves the process of material removal or material deformation. It comes as no surprise that the sheet metal fabrication equipment market is ever-growing. The growth of end-user industries such as construction, heavy equipment, and energy can be attributed to the growth of the sheet metal fabrication equipment market. In addition, the automotive industry is another major end-user industry, which is fueling market growth. However, it’s not all easy for the procurement teams in this market to conduct business.

Request Free SampleMaintenance cost of the equipment

The overall maintenance cost for sheet metal fabrication equipment consists of the time and money that was spent on the corrective actions and the loss of production time that results in direct revenue loss for the organization. Additionally, the age of the equipment, condition of the equipment, and amount of utilization of the sheet metal fabrication equipment also impacts the overall spend on maintenance. As a result of increasing cost of maintenance, the TCO of sheet metal fabrication equipment is increasing, taking it beyond the purchasing power of small and medium scale buyers.

Inability to track usage

Buyers across different industries are not tracking parameters such as idle machine time and proper estimation of the use of equipment. This results in the sub-optimal utilization of sheet metal fabrication equipment across different industries. As a result, third-party professionals need to be hired for conducting surveys to assess the true utilization rate of the equipment accurately.

Assessing the real value of equipment prior to leasing

Buyers across different end-user industries prefer procuring sheet metal fabrication equipment on lease. It helps to reduce the CAPEX and optimize the profit margins for buyers. However, buyers find it difficult to assess the value of sheet metal fabrication equipment prior to leasing as it requires checking parameters such as the history of usage and utilization rates. As a result, buyers find it difficult to assess the residual value of the equipment prior to its procurement. To ascertain the true value, buyers must take assistance from industry experts to understand the residual value of the equipment before leasing the equipment.

To avoid and tackle such procurement challenges, buyers in the sheet metal fabrication equipment market should invest in preventive maintenance and try to outsource the maintenance of equipment. Also, it can help if buyers hedge against raw material price fluctuations as it eases the financial burden.

 

Read more about the procurement challenges in the sheet metal fabrication equipment market along with procurement best practices, pricing models, supply market insights, and market challenges in SpendEdge’s upcoming report on the global sheet metal fabrication equipment market.
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Spendedge’s Supplier Risk Analysis Helps a Renowned Industrial Equipment Supplier Mitigate Supply Disruptions

Overview of the Manufacturing Industry

Amid a severe recession, the manufacturing sector is making outsized contributions to research and development to improve process innovation and mitigate risks in the supply chain process. Leading players in the manufacturing sector are focusing on realigning their business models to go on par with the fluctuating market dynamics and meet top-line growth objectives. The continuing shift toward increasing customer and supplier collaboration is compelling manufacturers to understand the needs of their end-users, strengthen customer relationships, and add value to their products. Since the demand for manufacturing products is growing at a slow pace; renowned industrial equipment suppliers are increasing their focus on developing advanced manufacturing capabilities to sustain their competitive position in the market.

Although the industrial equipment supplier space is witnessing a promising growth with the adoption of digital capabilities, several factors may influence the growth of the market.

  • The presence of new digital technologies: Today, innovations and product development is moving at a lightning pace and organizations need to keep up with the technological advances to stay relevant in the industrial equipment space. As consumers are focusing on gaining adequate product quality, leading businesses need to be more structured in managing innovations while maintaining consistency in their product offerings.
  • Rising competition: The industrial equipment space is sophisticated with the presence of numerous competitors offering a wide array of product offerings. The threat of new entrants is forcing businesses to stay abreast of the competition by emphasizing on their production capabilities.

Apart from these conventional factors, stringent government regulations and compliance issues may influence the growth of the industrial equipment space. To counter these challenges in an efficient manner and streamline their product offerings, organizations are leveraging the need for a supplier risk analysis solution.request free proposal

The Business Challenge and Our Journey

The client, a prominent industrial equipment supplier wanted to identify, assess, and mitigate supplier-related risks to reduce vulnerability and ensure continuity in the supply chain process. With the help of a supplier risk analysis solution, the client wanted to understand the potential risks related to supplier bankruptcies, capacity shortage, and supply of low-quality products. The industrial equipment supplier also wanted to assess the customer satisfaction levels to reduce the production delays and improve the corporate goodwill. The primary objective of the client was to take effective measures to prevent supply chain disruptions and make more timely and accurate business decisions.

To proactively predict the risks and develop robust mitigation strategies, the procurement experts at SpendEdge carried out extensive research methodology. The research methodology comprised of interviews and discussions with the prominent industry leaders in the industrial equipment space. Furthermore, the experts also compiled information across a wide array of reliable sources such as trade shows, paid industry databases, and company presentations to ensure the continuity in the supply chain process in the industrial equipment space.

The supplier risk analysis solution offered by SpendEdge assisted the client to bid for the most lucrative suppliers and gain relevant insights into the cost-effective solution for risk analysis. The solution also assisted the client in developing awareness of the inherent risks and prioritizing risk considerations over time. The supplier risk analysis solution also sought ways for the industrial equipment supplier to categorize the risks based on their severity and develop a robust mitigation plan to successfully deliver the products to the customers.

Fundamental questions answered in this supplier risk analysis include:

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The Results

During the course of the supplier risk analysis engagement, the industrial equipment supplier was able to streamline their supply chain process right from the manufacturing point to the delivery of products. The solution also offered a financial restructuring of the overall supply chain to adequately allocate resources to meet the business requirements.

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Top 5 Pharma Machinery Manufacturers Worldwide

The pharmaceutical industry across the world is growing at a rapid rate owing to advances in technology, rising income levels and willingness to spend on modern healthcare. To keep up with increasing demand for pharmaceutical products, pharma companies have to procure the best-in-class pharma machinery. The global pharma plant machinery and equipment market deals with pharmaceutical industrial machinery used in production, processing, and packaging of pharmaceutical products. Drug formulation and manufacturing equipment and packaging equipment are two major kinds of pharma machinery. The procurement market intelligence report from SpendEdge estimates the global pharma machinery market to grow at a healthy rate of 7.73% during the forecast period. request proposalThe report also states that the formulation and manufacturing equipment segment is anticipated to grow to about US$15.48 billion by 2021.  


Top Pharma Machinery Manufacturers

  • GEA

GEA is a global provider of process equipment and solutions serving industries such as food and beverage, pharmaceutical, healthcare, transport, and dairy. The company offers solutions to industries such as It is one of the oldest manufacturers of process equipment and derives about 70% of their revenue from the food and beverages segment. This pharma machinery manufacturer offers products including pharma plant equipment and machinery, equipment installation and commissioning, equipment maintenance, support and spare part provision, pharma drug discovery, processing and packaging equipment.

  • Merck KGaA

Merck KGaA is a British company catering to life sciences, chemical, and pharmaceutical industries and is one of the oldest chemical firms. It is one of the leading companies in genome editing and gene therapy. Pharma plant equipment and machinery, consumer healthcare, life sciences services and research, food and beverages research, government and academic research are some of the key services offered by the firm. In November 2017, the company launched a new filter bottle system for sterile filtration of cell culture media.

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Top 5 Manufacturers of Food Thickeners

A food thickener, or a thickening agent, is widely used in the food and beverage industry to increase the viscosity of a liquid food without changing its other properties. Food thickening agents are mainly used in food and beverage applications such as soups, gravies, salad dressing, and sauces apart from bakery and confectionery products. Food thickeners are usually starch-based, gel-based, or gum-based foundations and may comprise polysaccharides, proteins, vegetable gums, and functional flours. The procurement market intelligence report states that the global production of starch amounted to approximately 70–75 million tons with countries such as Germany, the US, Spain, Turkey, China, and India leading the export of cornstarch.

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food thickeners production hubTop Vendors Manufacturing Food Thickeners

CARGILL

Cargill is a privately held American company and a leading provider of food, agriculture, financial, and industrial products. They work in collaboration with farmers, customers, governments, and communities. Cargill offers a broad variety of hydrocolloids with consistent quality, which can be in the form of Carrageenan, Pectin, or Xanthan Gum. Such a food thickener is used in foods like prepared frozen meals, sauce & dressings, various dairy products, frozen desserts, beverages, fruit preserves (jam & jelly) and confectionery. In 2017, the company launched Seabird, an ingredient that provides texturizing solution for gelled dairy desserts.

Ingredion Inc.

Ingredion aims to become one of the best players for food and beverage based ingredients and additives supplier and has built a strategic framework to build its strengths. To achieve this objective the company has invested US$41 million in R&D activities dedicating more than 350 scientists working in their innovation center to develop innovative and localized solutions. Ingredion recently launched new rice-based NOVATION starches for superior texture stability in foods, which can perform under challenging conditions including high protein and high Brix content.

CP Kelco

CP Kelco is an American company headquartered in Atlanta, Georgia, and is a leading producer of specialty hydrocolloids featuring an extensive range including gellan gum, carrageenan, carboxymethyl cellulose, pectin, cellulose gum, xanthan gum, diutan gum and microparticulated whey protein concentrate and other biopolymers. In 2017, the company opened up new production facilities in Oklahoma to manufacture gellan gum which will help the company meet rising demand for food thickener.

Darling Ingredients

Darling Ingredients is a global leader in creating sustainable food, feed and fuel ingredients derived from edible and non-edible bio-nutrients. The company has over 200 processing plants on five continents that develop specialty ingredients such as gelatine and other high-energy feed ingredients. This food thickener manufacturer reported revenues of US$3.39 billion in the year 2016.

ADM

The Archer Daniels Midland Company (ADM) is an American food processing and agricultural commodities trading company. The company currently operates with more than 270 plants and 420 crop procurement facilities worldwide used in the production of food, beverage, and animal feeds. The company provides consistent, cost-effective, naturally-derived emulsifiers, food thickeners, and other thickeners, which can be used for applications beyond the food industry including oil well drilling, plastics and personal care items, and paints and coatings. Their key product line consists of emulsifiers and stabilizers, proteins, starches, and non-GMO and organics.

Read more about the top suppliers of food thickener along with liquid thickeners, thickening powder, sourcing strategies, pricing insights, procurement best practices, and procurement challenges in SpendEdge’s upcoming report on the global food thickener market.

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