Supplier management: 5 practices that make day-to-day purchasing easier

ore than a third of respondents reported that they have experienced significant problems with their supply chain in recent months. Which is not surprising, given how difficult it is to do this kind of management.

On the other hand, a study carried out by the North American consulting firm, Future Purchasing Consulting, showed that companies that adopt supplier management programmes generate, on average, an additional value of 23% in their income.

It is not from today that technologies have been supporting business activities and optimising processes in companies. In this article, you will discover how some supplier management practices can facilitate your company's routine. Check it out!

5 practices that prove that Supplier Management facilitates the daily life of companies:

1 - Suppliers Registration

This process enables interaction between the buyer, supplier and external bases. In turn, these integrations make it easier to guarantee the effectiveness of the information. It is in registration that we verify whether the company is legally constituted with the competent public bodies.

2 - Approval of Suppliers

In Homologation, fiscal, labour, financial, operational technical and environmental aspects are verified, as well as compliance with the buyers' internal rules to promote the adequacy to the organisation's objectives and guidelines.

3 - Supplier Evaluation

Throughout the supply period, the supplier's performance can be evaluated by means of questionnaires answered by the requesters, service managers and by the suppliers themselves. All answers are converted into scores that allow the creation of a ranking, from the best to the worst.

4 - Management of Third Parties

This practice automates and simplifies the process of managing and controlling company and outsourced employee information. This helps to reduce the risks of labour co-responsibility. In this process, the person responsible for the contract makes the environment available to the contracted company, which will register all third parties allocated to the client, sending regular labour and occupational health and safety information.

5 - Inspection

The Inspection practice allows the configuration of various processes related to technical visits, which assist in the control and consolidation of information generated during audits. The person responsible for the inspection includes in the system all data related to the visits, allowing managers and the supplier itself, when appropriate, to monitor the results. These activities can be carried out internally or delegated to specialised companies, keeping the information centralised in a single system.

This article is republished under the partnership between Nova SBE Executive Education and Supply Chain Magazine » Read the original article