It’s just part of managing vendors...
Over time, some relationships will improve and grow stronger. While others will, inevitably, become less beneficial and more troublesome. Whether it’s increased lead times, recurring quality issues, or rising prices, we suspect you could look at your supplier base right now and identify several companies that need to be replaced.
As the end of the year approaches, now is the time to tune up and improve your supplier base in the coming year. Doing so can significantly enhance both your personal success and the success of your company. Here are 3 tips to help you do just that:
Partner with Innovative Manufacturing Companies:
Partnering with suppliers on the cutting edge of technology and business affords you the opportunity to expand your sourcing sphere, effectively increasing your ability to meet your sourcing needs now. From higher quality parts to decreased costs and time to market, innovative suppliers work closely with buyers to ensure mutual success and cultivate relationships that create continued value.
Build and Measure the Right Manufacturing Metrics:
You don't need an expensive ERP system to start tracking the metrics that matter to your business today. But to carefully vet and compare your suppliers based on expertise, capacity, and price, you need to be measuring performance in at least some capacity. Analayzing the opportunity cost of each supplier in areas such as order fulfillment and return on work capital will take you a long way toward making the right sourcing decisions and positively impacting your bottom line in 2016.
Monitor Performance of Custom Parts Manufacturers:
And it all leads here. If your suppliers aren't delivering, neither are you. Whether you're a small business or large corporation, mitigating risk is key to slashing prices and increasing ROI. A study by the Aberdeen Group shows that more than 50% of buyers have lost financial capital at some point in their lifetime due to disruptions in their supply chains. Be proactive with your supply chain, large or small. Make sure you're getting the best product at the best possible price.
Here's How MFG.com Can Help You Upgrade Your Supply Chain:
- If you have suppliers you think may need to be reviewed or replaced, you can post one or more RFQs to the MFG.com manufacturing marketplace and start getting quotes from qualified, potential suppliers immediately.
- If you have a lot of parts you’d like to source suppliers, you can contact our Senior Sourcing Specialists and they'll will be glad to craft a no-cost solution to help you source as many suppliers as you may need.
To get started, log in to your MFG.com account now.