Three Reasons why you should focus on vendor management
Being in the business of business — whether you’re the manufacturer, shipping specialist, retailer or someone in between — requires a significant amount of faith in other people.
When you rely so heavily on others to ensure that your business is operating at its highest efficiency, you need to recognize how important your vendor management system is. A vendor management system allows you to build relationships with your suppliers and service providers, which in turn not only helps your business but theirs as well. It’s a simple analogy — when all engines are running smoothly, your train will be the first to arrive at the station.
Unfortunately, many businesses forget the importance of vendor management and vendor managed inventory, and let them slip from the radar. To make sure that you understand the advantages and the importance of a good vendor management system, here are three reasons why it should be a top priority in your business.
Alleviate Risk:
When you need to send your products out the door, there is a lot that can go wrong. For example, not having the proper packaging or pallet supply can literally shut down your production. Letting a quality vendor take responsibility for these vital components can be the difference between keeping or losing your customer. It is easy to get sidetracked with other duties and lose track of something so simple, yet so vital to your business operation.
Improve Performance:
Similar to alleviating risks, a vendor management system allows you to concentrate on the blood sweat and tears of your company — your product! Getting your product ready for shipping is the hard part. Not having the materials to ship it is a costly frustration that can be eliminated with a professional vendor managed inventory program. Customers are too hard to get to risk losing for reasons like this and happy customers are the lifeblood of every successful company.
Save Money:
One of the biggest advantages to a strong vendor management system is a combination of the two we’ve already discussed. With increased reliability, improved performance and efficiency, your company is bound to save money. Effective vendor management can allow you to identify and address your inefficiencies for a smoother process, which will help you maintain quality relationships with your customers and cut your costs along the way.
If you’re ready to embrace a vendor management program, but don’t know where to start, contact us today. We at Supply Pointe are experts, and we’re here to help improve your efficiency at every level of the supply chain.