Sunday 5 December 2021

How to improve supplier management?

Introduction: the production problem of enterprises comes from a large extent vendor supplier management is one of the most risky management problems in the enterprise. incoming materials are not timely, poor quality of incoming materials, such as enterprise procurement personnel around to fight the fire, tired to death, and trigger production costs a range of issues, including rising customer complaints and churn. improve the level of supplier management, is to reduce costs, is to increase enterprise efficiency and competitiveness! close the gate from the source,reduce the profit to solve the supplier management problem has also become an urgent problem for enterprises to solve.

In recent times in the process of enterprise visit research, many business managers have given me a reflection of a material management problem: suppliers always owe materials. in particular, some assembly-type enterprises, by the supplier delivery is not timely, quality problems.

I think in order to do a good job in supplier management, the first thing to do is to have a clear understanding of supplier management from the ideological, the understanding of suppliers from the two "no" start.

Do not take suppliers as suppliers

You might say, "this sentence is too round the mouth, the supplier is the supplier, why can't the supplier be seen as a supplier?" what should i look at as a supplier? "i think you should look at the suppliers of your business in the same way, he's part of your business, a workshop, a department.

Many enterprises in the face of suppliers, feel that they are customers, is god, suppliers have to be in my request, must be all-encompassing, there is a situation of high.drastic. if you have this idea of managing your suppliers in this way, there is no doubt that you are not good, why? because you always ask your customers in a high-minded way, you don't use the same mindset to do it supplier management, there is no right idea, where is the right implementation?

Do not take suppliers as the key to cost reduction

Don't think of the cost of supplier materials as a key part of your company's cost reduction, and don't always think about good value for money. of course, the reduction of material cost is a very important aspect of enterprise cost control, here i emphasize that the supplier's material cost can not be pressed again, in a reasonable range of pressure price is ok, but can not always think of decreasing, of course, according to the different industries, there will indeed be seasonal fluctuations, and every year with technological changes, management changes, suppliers' material costs will also come down.

However, must do market research, many enterprises in the procurement staff in supplier management, he did not have this concept. 


The company said to compress costs, and then he does not care about 3721, do not do research, do not do comparison, do not do quality, efficiency, cooperation, comprehensive service evaluation, just blindly kill price is not feasible.

With these two "nos", you'll know how to manage your suppliers. what i want to give you is some ideas and methods. 



How on earth can we manage suppliers well? the following recommendations are summarized:

The supplier as part of the plant management

You want to treat suppliers as a whole that is closely related to your plant, for example, toyota has toyota, honda has honda, especially in japan, Germany, the united states, some of these enterprises, no matter where the assembly plant is located, some of the supporting suppliers will follow. this is very critical, long-term cooperation, everyone's process, cooperation, quality requirements, service requirements are tacit understanding, there are certain rules.

Many large enterprises in the choice of suppliers are very careful, unlike many small and medium-sized enterprises, because this supplier came to see you did not send a box of moon cakes, did not send you a cigarette, or one day you feel that the supplier's price is slightly higher and arbitrarily cut him off.

Think of suppliers as a homogeneity, as a whole that is closely linked to your plant, and you won't be free to cut off a supplier and replace one. just like in a business, you don't change a person at will, you cut off a department, you have to have one first hompathic thinking, you can do a good job of supplier management.

The supplier to carry out real-time evaluation

the assessment should include an assessment of supplier access and an assessment of the supplier's supply process. what are the conditions for supplier access? how can each material reasonably avoid supply chain risks? 

This involves supply chain management, the main materials, the core, key product parts suppliers, are required to have more than two, preferably three, for the preferably. for example, many enterprises are now facing environmental protection problems, if your suppliers because of environmental problems shut down, your business also have to stop production? suppliers with two or three identical materials can avoid supply chain risks.

Suppliers have a very clear assessment, there are options to avoid supply chain risks, there is access assessment, there is process assessment, so that you can develop an access phase-out mechanism based on your cooperation. how suppliers enter, how to phase out, at a glance.

To help suppliers

The first point of advice is to think of suppliers as a homogeneity and to look at suppliers with homogeneity. he is a department of your business, when there is a problem to help him, to go deep into the supplier's site, not just to control him.

In the enterprise to do supply chain management often hear, suppliers say delivery, but late delivery, you call to hurry, the supplier replied: "sorry, the car broke down or traffic jams on the road" and so on, in fact, the goods have not been delivered, still on the production line, this is done supply chain management the state that is often faced. 


Therefore, as a customer, as a demand side, to face problems with suppliers, when suppliers have problems, to be good at helping him, see him as a whole. after you think of him as a whole, when you go to help him, this time, your relationship with suppliers will quietly change, into a service and service relationship, into a help and be helped relationship, into a mutual achievement, mutual promotion, common development of the relationship, rather than simple demand supply relationship, upstream and downstream relationships.

The supplier for detailed management

you might say, "do i have to send someone to his business to help him sort out the process and manage it?" "there are special needs to do this, but this is not the norm, and there are three aspects to the management of supplier details: progress management, quality management, and cost management.

Progress management

Progress management, that is, understanding the supplier's daily production progress. How do you know that? Can let the supplier to send you the production line report, so as to understand what he did every morning products, procurement staff will be so to manage, in the system to enter his production data, to use fax or Email way to report.

Progress management is managed like this, not until the moment of delivery to call to ask why it hasn't been delivered yet. for example, your delivery time  is 1 week, from the first day of how much he has done, this data will be reported to you, so that you can do a good job of progress management.

Quality management includes supplier delivery when you want to carry out testing, even in the production process to carry out inspection, and finally to ship, in the supplier's production site to carry out spot checks on the quality situation. this avoids the problem of material quality when your products are ready to go online.

Cost management

Your enterprise's technical team to understand the supplier's process, your enterprise in doing certain product design, must be the supplier to cooperate, together with mold improvement, perhaps many products in your there is only slightly changed, and for your supplier he can save a lot of costs, this time to go deep into the process details, research and development details, stand in the supplier's point of view to improve.

Contract management

What is a contract? it's a tacit agreement. and to cultivate the spirit of contract with suppliers, it is necessary to have rules, do well what incentives, do not do well and what penalties, in the supply contract signed with suppliers to provide clear, this is the basic management action, must do a good job. 

Through the formation of these contracts, through the formation of these contracts, to cultivate everyone's sense of contract, cooperation spirit, which is equivalent to the supplier as one of your team development goals.

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