Five Ways to Improve Collaboration with Your Suppliers

Your supply chain is always going to be your biggest cost challenge. There are a lot of variables, after all, and you cannot simply reduce your budget with your supply chain or else risk not obtaining the materials and products you have ordered. It is up to you to make it more efficient, from processing times down to the exact number of items that you need. Order too many, you have a surplus that you had to pay extra for. Order too few, however, then you need to pay for processing times, production, and transportation all over again just to keep up with demand.

Making your supply chain more efficient is difficult, yes, but it is not impossible. A great way to start is to work out ways to improve the collaboration between your suppliers. To improve that collaboration, all you need to do is follow these steps:

Improve the Quality of Communication

When it comes to working with others in business, you need to focus on communication. When people respect and like you as a company, they will work well with you. This doesn’t mean you want to be a pushover, but being fair will go a long way towards creating lasting relationships that can even result in long-term discounts and prioritized service.

Don’t Be Quick to Lay Blame

When something goes wrong, it often costs money. This can be a very frustrating experience for everyone involved but before you start pointing fingers remember how other people tend to react to being laid with the blame. Instead, try to take a step back and use these strategies so that you can increase accountability without laying blame unfairly.

Use the Right Software to Improve Transparency

Suppliers need to know what is going on in your supply chain in order to provide the best service that they can. Transparency, then, is key to improving collaboration and communication. Thankfully you don’t need to give them a call and update them on your current business status in order to provide this transparency, just the right supplier portal.

Automate Processes for Faster Management

This software will also need to be able to automate processes using the data you have inputted. It should be able to do things like send out invoices, make notifications, and allow for updates to be made.

Keep The UX Interface Simple

User experience is critical when it comes to working with other people, even if it cannot necessarily always be measured. By choosing software that is simple to use, you will encourage all of your suppliers to use the system you have put in place.

You can generally improve all five of these steps in one fell swoop just by using the right SAP Supplier Portal. The right system can do so much for your company and for your suppliers. It is easy to use, versatile in its use and is smart. Automated reports and tasks can reduce the admin times and processing periods for everyone involved, allowing you, your suppliers, and your customers alike to enjoy a more convenient and cost-effective service.  

All businesses need to collaborate in order to succeed. You do not exist as an island, and by not addressing both the issues in data and in the human element of your supply chain you will never find a solution to the inefficiency you are facing. The right software, however, can solve all your woes, so choose carefully and ensure it suits your industry or can be customized accordingly.