Understanding  Suppliers

Suppliers are the entities that provide products or services to businesses. They can be individuals or companies that specialize in the production, distribution, and delivery of goods.

Types of suppliers

1. Product-based Suppliers

Product-based suppliers deal with tangible goods such as raw materials, finished products, equipment or machinery parts.

2. Service-based Suppliers

Service-based suppliers offer intangible solutions like professional consultants, IT services providers, marketing agencies.

The Importance of Supplier Relationship Management (SRM)

Supplier Relationship Management is a process that helps organizations manage their relationship with key vendors effectively to gain better value from supplier partnerships.

Effective SRM includes:

  • Finding quality suppliers
  • Establishing well-defined contracts
  • Building trustful relationships

Leveraging Vendor Management System (VMS) for Procurement Process

A VMS is software specifically designed to help procurement professionals find compliant suppliers quickly and cost-effectively.
This tool enables organizations to monitor KPIs such as response time from vendors on quotes , purchase order completeness and accuracy.

Maximizing Benefits through Supplier Diversity Program

A supplier diversity program promotes economic opportunities by encouraging multinational corporations (MCN) sourcing directly from minority-owned small businesses owned by women or underrepresented groups
this approach grants SME’s access to large supply chains they would not normally have if run independently .

Simplifying Supply Chain Management Through Technology Integration

Supply chain management encompasses activities related to the design and planning,distribution ports across globe
It involves integrating logistics operations so that businesses can pass information rapidly between trading partners using systems like cloud based ERP platforms which improves data integrity efficiency .

References:

  1. The Economic Cost of Failing America's Small Businesses by Rahul Kapoor
  2. Procurement Policy Handbooka Guide To Implement Effective Procurement Policies-Finance Series by Manraj Dhillon.
  3. Supplier Strategies: An Information Management Perspective by Marina Dabic
  4. Supply Chain Management : Theories and Practices by LIMING LIU.
  5. VENDOR MANAGEMENT ESSENTIALS: An Efficient, Innovative and Sustainable Approach to Managing Outsourcing Engagements By MARC OSBORN
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