Drive Continuous Improvement

10 December 2015 1:23:25 PM NZDT

 

Take control of your supply chain.

 

Measure, analyse and manage supplier performance to reduce costs, mitigate risk and improve operations.

 

Pay on time

Pay your suppliers on time.

 

A business with a reputation for paying slowly may find suppliers’ prices a little higher and terms a little stiffer!

 

A business that pays its suppliers in advance or on time can take the initiative and negotiate price and terms with them.

 

A trading partnership
Suppliers are very interested in your business. We sometimes underestimate how important we are to our suppliers.

 

But review your suppliers and decide which ones you want to have a trading partnership with in 2016.

 

Just to nail them down to the cheapest price possible may not be the way to establish a long-term relationship.

 

Have a spread of suppliers
It is just as important to have a spread of suppliers as it is to have a spread of customers.

 

Don’t get into the hands of one supplier. Things can change very quickly – a change of name, a take-over, a change of tactics or preferences. Perhaps they are overtrading and could fail.

 

Watch your suppliers carefully and occasionally take on another one, even in a completely parallel area. Then you will keep the initiative. The suppliers will respect your business but won’t be able to take advantage of you. You’ll always have an alternative.

 

Financial stability
The financial stability of your suppliers is as critical as that of your customers.

 

‘Get in front of your suppliers.’

 

Have a meeting with them. Find out how stable they are and if they will still be in business next year!

 

Source: Based on Business Owners Conference: Supply Chain, November 2015.
Silver Book vol. 2, p 175-176

Posted in UBT Updates By

Erica Field