Supplier management: what is it and how does it impact your business?

Supplier management: what is it and how does it impact your business?

What is supplier management?

Supplier management is an important process in the purchasing area, which seeks to ensure control and the best conditions related to companies' supply sources.

A good relationship between companies and their suppliers has become increasingly important in making businesses more competitive and promoting company growth.

Possible problems involving partnerships can affect the company and cause great damage, such as supply shortages, damage to the organization's image and irreversible financial impact.

For this reason, managing suppliers means more than negotiating prices and hiring partners who offer lower costs. There are several elements that need to be taken into consideration when closing a deal.

Price, quality, delivery time, compliance with legal and technical requirements, issues of ESG are some of the aspects that can impact your business, both positively and negatively.

Below, find out what the main benefits of supplier management are for your company.

Supplier management: how does it impact your business?

The choice of inputs directly influences the product that will be offered to the customer and the experience with the brand. Therefore, quality is a fundamental aspect to be considered when selecting your company's partners.

In addition to quality, supplier management also ensures availability and compliance with delivery deadlines.

The golden rule is to know your supplier well and invest in strengthening this relationship to get the best out of the partnership, with differentiated, greater conditions. savings, product quality, on-time deliveries, among other benefits.

Technology becomes essential to manage all processes and ensure a sustainable partnership between companies.

Main benefits of the supplier management platform

Implement a supplier management platform helps purchasing teams work with more intelligence, strategy, assertiveness and compliance.

Professionals eliminate manual and decentralized processes, and achieve what they need to elevate the supply area to a strategic position.

For the sector to be a protagonist in organizations, it is essential to have technology as an ally. Learn about the main ones below:

1. economy

Supplier management helps reduce purchasing costs and achieve savings. We know that R$1 saved on purchases means R$1 in profit for the company's cash flow.

2. Agility

Once operational processes are automated and information is centralized in a supplier management solution, the professional gains productivity and gains strategic focus.

3. Governance

Through a supplier management platform, it is possible to check whether partners comply with regulations and standards, whether they can honor their financial commitment, whether they meet regulations and standards, among other associated risks, which can negatively impact a business.

4. Collaboration

Effective communication with your partners is important to streamline purchasing processes. Therefore, in addition to concentrating interactions on a single platform, you can keep your suppliers' information always up to date and monitor their performance.

Strategies to help you better manage your suppliers

Global procurement challenges and potential supply disruptions have made supplier relationships more important than ever.

We have selected five strategies that can help you better manage your business partnerships, especially in uncertain scenarios:

1. Treat your suppliers as partners

Suppliers can help customers increase efficiency, reduce costs and achieve innovation.

2. Secure long-term agreements

Long-term agreements foster a deeper relationship and ensure supply even in challenging external scenarios.

3. Create a BSC (Balanced Scorecard)

Setting clear expectations for suppliers helps you regularly monitor supply performance.

4. Build contractual clauses

Correct contractual clauses are very important in cases of legal disputes or unforeseen events.

5. Regularly evaluate your supplier base

Purchasing teams should frequently assess the supplier base, taking into account business priorities to better manage key spending items.

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