Tips on supply chain management
10 best practices
Paul Teague -- Purchasing, 9/18/2009 9:45:38 AM
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Supplier relationship management should really be called "alliance" relationship management because the partnership with suppliers is so important.
That was one of the observations of Bob Engel, national director of client services for supply chain management for Resources Global Professionals, at the Chemical Purchasing Summit II in Boston sponsored by Purchasing and ICIS Chemical Business magazines.
There is no such thing as over communicating with suppliers, he said. More often than not, problems arise from inadequate communication.
Critical for effective alliance management, he said, is to establish a governing council. In fact, it's the first step in the process. It will drive strategies, he said, and it helps in removing barriers in organizations.
It's also important to align and staff the supply chain organization. And important there is to think strategically, he said. "The focus should not be on measuring transactional activity."
Other tips he gave the conference attendees:
- Use technology and procure-to-pay. But, he said, it's important here to budget enough time and money for training after system implementation.
- Set a strategic sourcing strategy.
- Establish key supplier alliances.
- Establish processes and controls.
- Manage total cost of ownership.
- Manage compliance and risk.
- Optimize company-owned inventory.
- And establish Green initiatives and social responsibility.
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Good suggestions. Important to remember that communication involves both talking and listening. Talking to your suppliers is crucial, but so is listening to your suppliers. If you listen closely, you can learn a lot about risks and opportunities in your supply base.
Josh Green
CEO, Panjiva
Josh Green - 9/18/2009 3:51:56 PM EDT -
Couldn't agree more! Great posting.
Nick Parnaby - COO RollStream Inc. - 9/18/2009 12:36:27 PM EDT
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