Managing Supplier Relationships For Ecommerce Inventory

Guess how a recent user snagged a massive $5M contract using Breadboard? Spoiler: It wasn’t the inventory or purely fast turnaround. It was something much more basic, yet profound. It was the solid, real relationships they've built with their suppliers over the years combined with automating the manual calculations to give the best quote possible. Here's the deal: In electronics manufacturing, those supplier bonds are everything. Negotiating Power: It's about more than just transactions. When there's mutual respect and trust, you're not just another customer; you're a priority. And yes, that often means better deals. Stock Priority: Ever wonder who gets the last on-the-shelf components during a crunch? It's the folks with the strongest partnerships, not the highest bids. Insider Info: The heads-up on market shifts or looming shortages usually doesn't come from a newsletter. It's from a supplier who sees you as a partner, not just a purchaser. Crisis Support: When things go sideways, and they sometimes do, you want to be more than just a number to your suppliers. Those deep relationships mean you've got allies, not just vendors. Risk Mitigation: Sure, a diversified supplier base is smart. But reliable, proven partners are your real safety net against the unpredictable. So, how do you forge these invaluable connections? Concentrate your efforts: It's tempting to spread your bets, but deepening ties with fewer suppliers can pay off in spades. Be proactive, not reactive: Keep your ear to the ground. Cultivating potential partnerships before you're in a bind means you're prepared, not desperate. Make it personal: In an age of automation, personal relationships still rule. Don't outsource the heart of your operations. Leverage tech smartly: Use platforms that enhance, not hinder, your supplier interactions. That's where Breadboard comes in. We're not here to replace your coffee meetings; we're here to make sure they happen more smoothly, with all the info you need at your fingertips. This isn’t about tools or transactions. It's about people, trust, and shared goals. That's the secret sauce. Interested in a platform that understands that? Let’s chat.

Suppliers can make or break a Procurement team. And yet, supplier relationship management (SRM) remains an underutilized tool for many teams because of lack of time, resources, or know-how. 💡What is an SRM framework? A set of structured strategies and processes intended to enhance supplier performance and build relationships that can deliver a competitive edge. 💡 How do you use it? 1️⃣ Segment suppliers so the right SRM approach can be administered to each supplier. Make use of Kraljic matrix, preferencing, etc. I managed Spices commodity - a market with many suppliers and many customers. The category was largely transactional with the exception of some high profitability SKUs. 2️⃣ Measure supplier performance with defined KPIs and assess regularly to provide actionable feedback. It requires regular upkeep. A client of mine faced supplier performance issues repeatedly across several locations. There were no agreed upon metrics so there was no reliable way to track performance and deliver improvements. A scorecard solved the problem, even if it took months to roll out. 3️⃣ Build relationships through specific strategies based on segmentation. Set up recurring update calls. They are a great way to stay abreast of supplier performance, stakeholder feedback, new business needs, and changing market conditions. I had a bottleneck category with a development supplier. mutual win was to leverage the supplier’s innovation capability while de-risking supplies. So, our meetings would cover supply market risk + NPD discussions. 4️⃣ Assess and mitigate risk Identify risks associated with each supplier, be it financial, supply disruption, sustainability, etc. Risk can be rolled into the performance score card as well. Mitigation plans can include alternate supplier development, or build in contingency plans. 5️⃣ Manage relevant aspects through contracts Usually a part of category strategy development, but deserves special mention when obligations must be contractually defined (for ex., strategic alliances, performance improvement plans, etc.) 6️⃣ Ensure alignment with Procurement and Business goals The ultimate goal of any SRM program is to further overall business objectives. During the COVID years, cost became a second priority to supply assurance across many categories. Many of us tinkered with our strategies to rebalance priorities. Supplier communications became far more frequent to better understand market conditions, waivers were given on key KPIs like On Time In Full, etc. 💡Why do I like it? It is a simple framework which is heavier in execution.. as it rightly should be, given that it takes time to build relationships. 💡What are the pitfalls of this approach? While the approach itself is solid, organizations face challenges due to poor data management coupled with a lack of integrated digital solutions that can seamlessly weave in SRM with day-to-day Procure-to-Pay activities including contract management.

🔗 **Effective Supplier Management: Key Considerations for Long-Term Success** 🌟 Managing supplier relationships is crucial to achieving a resilient and efficient supply chain. Here are three top priorities to build productive, long-term partnerships: 1. **Clear Communication & Expectations** 📞: Transparent communication is essential. Clearly defining expectations—like quality standards, timelines, and pricing—prevents misunderstandings and keeps everyone aligned. 2. **Collaboration and Proximity** 🤝: When procurement personnel are close to the supplier, either geographically or through regular interaction, collaboration improves significantly. This proximity not only fosters stronger relationships but also accelerates response times, allowing quicker adjustments and issue resolution. 3. **Risk Management and Performance Tracking** ⚠️: Identify potential risks and measure supplier performance regularly. Establishing KPIs and conducting periodic reviews ensures that suppliers stay aligned with your strategic goals and mitigates risks effectively. Proactive supplier management isn’t just about contracts; it’s about building partnerships that add value and strengthen your supply chain. By focusing on communication, collaboration, and continuous improvement, companies can achieve greater flexibility, quality, and resilience. What is your approach? What do you consider as most important in your supplier management strategy? no. #SupplyChain #SupplierManagement #Procurement #Collaboration