MANAGING A GROWING SUPPLIER BASE EFFECTIVELY
The supplier base of organizations is increasing – this is a consequence of a myriad of factors like increasingly globalized business processes that provide access to global suppliers, increasing the complexity of supply chains, increase in the scale of operations of organizations, etc. Due to the increase in the number of suppliers engaged with the organizations, managing the entire lifecycle of suppliers becomes difficult. Having a well-structured supplier management process in place will allow organizations to manage their multitude of suppliers with ease.

ACHIEVING COST SAVINGS AND QUALITY CONTROL
Having strong supplier management practices will enable organizations to identify cost savings opportunities in the supply chain and scrutinize the quality of supplier output. This directly impacts and contributes to the company’s bottom line

IMPROVING THE ORGANIZATION’S SUPPLY TRANSPARENCY
When you have a supplier management system in place, it will allow you to streamline valuable information and data regarding the lifecycle of the suppliers. It enables the organizations to have increased transparency into the number and type of engaged suppliers and how they are performing and helps in identifying areas of improvement and design strategies to improve their performance further.

TRACKING COMPLIANCE TO RELEVANT PARAMETERS
Every supplier has to fulfil specific set parameters to ensure they are fulfilling the requirements of the organization. Using a supplier management system, you can evaluate the suppliers’ compliance with the set parameters and identify the scope of improvement to derive maximum value.

EVALUATING SUPPLIER PERFORMANCE
This is possibly one of the essential benefits of having supplier management. You need to know how your suppliers are performing because your organization’s performance is mostly dependent on them. Not only will supplier performance management allow you to evaluate supplier compliance, but it will also give you in-depth insights on their performance. Supplier management includes the creation of various KPIs to measure supplier performance, and using these; you can assess the value created by the suppliers.

BUILDING DEVELOPMENT PROGRAMS TO SUPPORT SUPPLIERS
Once you have evaluated suppliers and identified areas for improvement, supplier management can help you design development programs to support suppliers, especially the one that caters to long-term/crucial requirements and help improve their performance.

LEVERAGING SUPPLIER RELATIONSHIP MANAGEMENT
It might not seem so, but the relationships you build with your suppliers can be very beneficial for your organization. When you collaborate with your suppliers and involve them in the process of deciding how to achieve the relevant requirements, you build long-lasting, trust-based relations that can be leveraged in the future. Collaborating with suppliers makes them more willing to understand your business needs and consider strategies on the organization’s terms

ASSESSING AND MITIGATING SUPPLIER RISK
Identifying and mitigating supplier risk is another unequivocally critical benefit of having efficient supplier management for your organization. As supply chains and the resultant supplier relations becomes complex, the probability of detrimental supplier risks also increase. Supplier management helps in identifying and assessing the impact of the supplier risks and devising appropriate risk mitigation measures.

BUILDING A SUPPLIER MANAGEMENT PROCESS
Now that we have identified the need and benefits of supplier management, it is necessary to establish a supplier management process. The process will guide an organization about the strategies it has to employ to manage the entire lifecycle of the engaged suppliers

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