Suppliers have a hugely important role at every stage of the product lifecycle. From sourcing raw materials to helping ramp up production, and to finding better options for raw materials as the market starts becoming saturated, companies need to work closely with their suppliers to get the best out of their products.
Suppliers provide a company with the services it uses in providing goods and service to its customer. Without a solid relationship with its suppliers, a company can not offer its own customers a consistently high quality product or service.
Measuring and evaluating supplier performance is paramount to a reduction in costs, increased process efficiency, and business performance. They help prevent product issues and post-payment defects and drive improvements in the supply chain.
Here is how SRM can be used and how it can benefit your business.Improve cost management. The first benefit of SRM is cost management and/or a reduction in costs. ... Streamlined operational efficiency. ... Greater supply chain consolidation. ... Stronger (and longer) supplier relationships. ... Increase your potential to outsource.Feb 17, 2021