Just as company representatives cater to the needs of their customers, they should also strive to create an accommodating environment for the suppliers with whom they work.
Suppliers can have a significant impact on your company’s supply chain and overall success, especially when it comes to the quality and timely delivery of your orders. Additionally, as Entrepreneur magazine pointed out, suppliers can contribute to the innovation behind and development of new products.
Consequently, manufacturers should work tirelessly to foster the relationships with their suppliers. They can do so by using their enterprise resource planning system in the following six ways:
1. Streamline the selection process
As spelled out on the Microsoft Dynamics website, manufacturers need an efficient and reliable system to track suppliers – particularly when initially researching and seeking them out. An ERP solution not only enables companies to do that, but it also opens up the door for better communications in the future should a manufacturer decide to hire a given supply company.
2. Better document criteria
As previously mentioned, once suppliers have been selected, manufacturers can use their ERP system to track the companies’ performances over time, noting monumental events such as those that impacted customer satisfaction levels. This will enable overseers within your company to add or switch to more fitting suppliers and make better decisions for the business as a whole.
3. Provide better lead times
Continuously requesting large and rush orders from a supplier as a result of poor inventory management could strain an otherwise healthy relationship. Using an ERP system, however, will undoubtedly provide more accurate and efficient inventory reporting for your organization. By maintaining that inventory control, manufacturers are more likely to develop and sustain strong connections with their suppliers.
4. Pay invoices on time
An outstanding bill certainly has the ability to place a hiccup in otherwise flourishing communications between a manufacturer and a supplier. Managing invoices within an ERP solution will not only provide users with easier access to these important documents, but it will also ensure balances are paid in an efficient and timely manner.
5. Report data in real time
According to ERP Focus, inventory management software will enable you to provide vital in-person and remote audits to your supplier. Simultaneously, as your company’s production demands change or as the time to renew contracts approaches, an ERP system will be right there to streamline these all-important processes.
6. Share goals and resources
Having a vision and relaying it to suppliers can potentially strengthen an existing manufacturer-supply company relationship.
While an ERP system will allow you to track the progress of company ambitions, supplier can provide the extra push in making sure those goals are met. Similarly, suppliers may divulge their own internal initiatives in the hopes you’ll impart resources. Regardless of how the sharing of information between manufacturer and supplier plays out, it is likely to have a positive impact on the relationship as a whole.
As an important part of your supply chain, it’s imperative to nurture relationships with supply companies – both for your company’s benefit and for the benefit of the supplier. DMS’s Warehouse Mobile Data Entry Module will put the power of NAV Inventory Scanning at your employees’ fingertips, making for efficient inventory management and open, accurate reporting within your organization.
Ultimately, the combination of a manufacturer’s internal improvements and their ability to anticipate and cater to suppliers’ needs could lead to a healthy, long-lasting relationship between the two entities.
Companies interested in learning more about improving supplier relations through NAV Inventory Scanning can click to download the “Keeping the Physical World and the Virtual World in Sync” white paper.