Tag: supply chain analysis

original equipment manufacturers

Top 4 Benefits of Supplier Performance Management

What is Supplier Performance Management?

Supplier performance management is defined as a process that helps businesses to analyze, measure, and manage the performance of their suppliers. This helps them to cut costs and drive continuous improvements in supply chain operations. Supplier performance management involves activities that aim at improving the performance and capability of suppliers. Also, it ensures that both parties share in the benefits of better quality and performance, shorter cycle times, and lower costs.

By leveraging supplier management solutions, businesses can identify potential issues and their root causes. Companies mostly rely on timely delivery, price reduction, and service quality offered by their suppliers in order to gain more profit. Therefore, supplier performance management directly impacts the quality of the whole supply chain, making it important to establish an efficient mechanism to ensure the quality of services or products offered. Through supplier performance management, companies can eliminate suppliers who fail to comply with performance requirements. Supplier performance management helps in setting the stage for suppliers to understand the needs and expectations of customers. As a result, a strategic partnership can be built, resulting in an increase in suppliers’ performance and competencies.

Supplier performance metrics brings together the components of risk management, metrics management, supplier segmentation, and consequence management. This can help actively manage important supplier relationships in a consistent manner, providing actionable data to facilitate supplier selection.

Gaining 360-degree visibility into supplier performance and contractual agreements is difficult for businesses. But we are here to help. Get in touch with our experts right away.

Benefits of Supplier Performance Management

Avoid supply chain risk and disruptions

For businesses, it is important to be familiar with third-party vendors in their supply chain. This helps them to put measures in place to prevent interruptions and reduce the incidence of risk exposure. Supplier performance management offers in-depth visibility into the risks that can be posed by suppliers in the overall supply chain network. As a result, businesses can adapt to preventive measures to reduce or eliminate the risks that can disrupt the supply chain operations in the future.

Quantzig’s supplier management solutions can provide you a portfolio of capabilities that enable you to start building on supplier strengths, even before they’re fully onboarded. Request a FREE proposal to know more.

Improve brand reputation

The actions of suppliers may tarnish the brand image of companies. This is where supplier performance management can help. By leveraging supplier management solutions, businesses can track their suppliers’ performance against the KPIs and enact corrective actions early. This can help in improving brand reputation in the eyes of the customers.

Avoid costs and achieve savings

Lack of accurate and timely supplier information can have a huge impact on costs and savings. Supplier performance management can also help businesses in tracking a variety of cost factors that can contribute to savings achievements. Also, this can help in centralizing supplier data into a single source for everyone across the organization interacting with vendors.

Our customized supplier management solutions offer end-to-end modularity that can help in better supplier relationship management and ensure compliance and mitigate risks. Request a FREE demo to gain better insights.

Collaborate with suppliers

Collaboration with suppliers helps in creating new value for businesses. Supplier management solutions can help businesses gain relevant information about suppliers that can further pave the way for establishing robust relationships with suppliers. The data collected through supplier performance management solutions can help improve the supply base, create realistic contracts based on past performance, more communication with suppliers, formation of common goals, and the establishment of trust. Thus, supplier performance management can help in establishing meaningful and mutually beneficial relationships with suppliers and improving supplier relationship management.

Want to know more about the benefits of supplier performance management? Request for more information.

credit risk modeling

5 Best Practices to Improve Purchase Order Flow Management

A purchase order is a document that authorizes a purchase transaction. This document mentions product descriptions, prices, discounts, quantities, date of shipment, terms of payment, and other terms and conditions.  When the seller accepts all the terms and conditions mentioned in the purchase order, then the contract becomes legally binding on both the parties. A purchase order is used by the finance department of any company for forecasting and budgeting. Therefore, purchase order flow management becomes very essential for businesses that deal with large volumes of purchase orders. If any business fails at purchase order management, it can lead to chaos in the procurement and finance department. However, streamlining and organizing purchase order flow management is a time-consuming process for businesses. In this article, our supply chain analytics experts have highlighted a few best practices, implementation of which can help companies to improve their efficiency within their purchase order flow management process.

We understand that manual purchase orders are inefficient and time-consuming to maintain, which is why we have developed advanced analytics solutions to help you tackle this challenge. Get in touch with our experts right away.

purchase order flow management

Best practice #1: Assess existing workflow

For your purchase order management system to work efficiently, you need to track and analyze the existing process as designed and used on a day-to-day basis. An in-depth analysis of purchase order workflow can help you identify bottlenecks in the manual purchase order system. Also, it can guide in planning the purchase order lifecycle and can further help in addressing other inefficiencies in the business operations.

Best practice #2: Establish a central supplier directory

Establishing a central supplier directory can be a significant step towards improving purchase order flow management. This can help in enhancing the quality of information about different suppliers as well as communication across the different levels of an organization. Centralized repositories can further help in reducing the level of effort needed to retrieve and manage information throughout the organization. Additionally, it provides quality information leveraging which data analytics experts can visualize and implement strategic improvements.

Quantzig’s analytics capabilities help companies analyze the lifecycle of purchase orders, right from the order creation stage to its closure. Request a FREE proposal now to know how.

Best practice #3: Improve authorization processes

Purchase order flow management is sometimes sabotaged by the inefficient authorization process. A disruption in the purchase order management process can occur if manual paper processes are practiced or too many signatures are required on a single purchase order. Therefore, it is important to improve the authorization process.

Best practice #4: Quality Assurance

To have a better purchase order flow management system in place, accurate data entry of purchase order into the system is very important. Businesses should put a series of quality checks in place to ensure that all the required details have been accurately filled. Such details include purchase quantity, price, shipping details and whether the products are taxable or non-taxable.

We help our clients with our purchase order flow management solution to automatically reroute in-transit inventory to wherever it is needed the most. Request a FREE demo below to know more.

Best practice #5: Cancellation Process

To improve the purchase order flow management system, procurement teams in any organization need to be very careful about the cancellation process. They should accept cancellation only when it is properly formatted and documented in an e-mail or a hard copy of cancellation is forwarded to the procurement team from an authorized signatory. This can help in preventing procurement fraud and can help in improving the vendor-buyer relationship.

Want to learn more about the best practices to follow for your purchase order flow management? Request for more information below.

Get More Info:

Close
Quantzig Logo

Hello there!

Are you interested in Quantzig’s analytics solutions?

Contact us by submitting your details below and we will get in touch with you.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice