With the growth of any company’s supply chain, its risk grows simultaneously. Every new supplier brings with the threat of sub-standard performance. Improper oversight can cause the quality of supplied parts/components to decline rapidly. Therefore conducting a thorough supplier audit with the help of efficient supplier auditors prove to be effective for examining the supplier quality and its ability to pose risk to the organization before it gets too much out of hand. With the help of supply audits, companies are able to improve/sustain their overall quality. Supplier audits ensure supplier product quality and optimal delivery standards.

Existing or new supplier issues may cause financial loss to any company, or even harm its customers. With the effective solutions in place regarding supplier quality management, supplier auditors’ work can both be efficient and painless, while identifying serious problems in the early production cycle.

Long-lasting and trusting relationships with its chain of dedicated suppliers happen to be the primary goal of any successful business. Let us see which strategies are able to achieve this.

Suppliers should not be treated as vendors

Their partnership with your organization should not only be based upon financial transactions, but also on loyalty, and mutual trust. The suppliers should feel like they too are a part of the business. They should be informed regarding new processes, like promotions and products such as new releases, and the buyer organization should listen to the seller’s concerns as well.

Read: What Makes Investing in a Supplier Development Program Beneficial?

Technological implementations make supplier relationship management simpler

Investing in proper supplier management software is completely worth it since they can help your organization keep track of all the supplier information in one place. You can also use them to do order management with the suppliers, by creating, processing, and tracking the purchase orders.

Timely payments are crucial

Just as you prefer timely action from the suppliers, they also expect timely from your side. In case you have issues with controlling spend, automated software solutions can help to easily match payments with the invoices and therefore reduce errors.

Forging deep and strong relationships

Maintaining regular communication with proper and up-to-date information makes the suppliers feel valued. They should also be aware of the forthcoming strategy/plans so that they can prepare fit into those plans and help in their execution for the purpose of mutual benefit.

The balance between price and value

Growing substantial profits depends upon quality service/materials for the proper price. Using financial flexibility you can bulk buy and get better pricing. However, see to it that you don’t end up with too much stock. Clearing our payments earlier than expected can also make you eligible for supplier discounts.

Detailed agreements for better supplier relationships

Well-documented relationship agreements with the suppliers help the supplier auditors reduce the possibilities of confusion/disputes. It is a good idea to make flowcharts or info-card decks to explain the entire process to both of the organizations and the supplier’s team so that everyone realizes their singular duties and can immediately recognize in case of an anomaly in the workflow.