Enterprise resource planning software helps determine supplier reliability

October 29, 2014 at 1:15 PMAdministrator
Enterprise resource planning software helps businesses hold suppliers accountable.

Distribution centers need to establish quality relationships with their suppliers in order to keep operations consistent and customers happy. Unreliable suppliers can be costly and detrimental to inventory control.

It's important to track accurately the items delivered by suppliers and when. Without an accurate ledger of information, it is impossible to know how suppliers are affecting business operations. Utilizing enterprise resource planning software allows distribution centers to log promise dates, receipt dates, quantity requested, quantity delivered and the condition of all items. Depending on which areas a poor supplier falls behind in, companies can alter their practices. For instance, if it turns out a supplier consistently delivers several units fewer than the quantity requested but they always arrive on time, a business can decide to stock up on items and prepare for their own shipments accordingly.

To avoid conflict, set up expectations and communication practices with a supplier as soon as the partnership starts. Be overly conscious of their actions, questions and concerns. Respond quickly to their inquiries and keep in touch with them on a regular basis. This establishes a strong connection and lets the supplier know the business is aware of the important role it plays in their daily operations.
On the other hand, demonstrate for the supplier that the business is a good partner, as well. Let a supplier know about the success the company has had already and demonstrate an understanding of the target market. Suppliers are interested in high sales and consistent numbers.

Choosing a supplier
When debating which group to acquire goods from, take into consideration their prices, any discounts they can offer, particular delivery contracts and timing. Ask about instances in the past when the supplier resolved a tricky issue with another client. See if that client is available as a reference. In addition, don't be afraid to conduct research before speaking with the supplier. Enter into negotiations with a dollar amount the company can afford and would like to spend. Shopping around to find the best supplier for the business is time well spent.

Keep in mind that the best suppliers will advocate for the business and look for ways to make life easier for the company and the customer. They will have quality products and a strong credit score. Make sure the supplier won't be going out of business any time soon, otherwise the livelihood of the warehouse will be jeopardized. 

Posted in: Warehouse Automation

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