manishjain1008
Manish Jain
DID anybody has a project on vendor management. PLz send attachment
vendor management
- Thread starter manishjain1008
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- management vendor
rahul_parab2006
Rahul Parab
Working With Your Vendors and Suppliers
It is just as important to communicate with your suppliers and vendors as it is to communicate with your customers. Establishing the proper communication channels and information flows between you and your suppliers can lead to increased efficiencies, reduced costs and better customer service. This section will cover the simple communication methods (i.e. telephone) and other ideas that will allow your company to build a win-win relationship with your suppliers and vendors.
Definition: Supplier Relationship Management is an all-inclusive approach to managing the affairs and interactions with the organizations that supply your company with goods and services. This includes communications, business practices, negotiations, methodologies and software that is used to establish and maintain a relationship with a supplier. Benefits include lower costs, higher quality, better forecasting and less tension between the two entities that result in a win-win relationship.
Also Known As: SRM, S.R.M.
Examples: Supplier Relationship Management can be simplified by using software especially designed to help businesses accomplish this function.
Implementing a World Class Purchasing Organization
Before implementing any purchasing best practices, there has to be the backing of senior company executives. Without the buy-in of senior executives, including the CEO and CFO, any attempts at developing a world class purchasing strategy will be smothered by middle management. Changes that have to be made in any company must be backed by senior executives in order to achieve results.Any company that has been procuring data over a period of time will have a database of vendors that contain current, duplicate, out of date and incorrect data. If you company has a number of geographically separate purchasing departments, the level of inaccuracy is multiplied. For a world class purchasing strategy to be implemented, the data from each purchasing department has to be updated to reflect the current vendor data and to be rationalized to eliminate duplicate, incorrect and unnecessary data. The benefits of having accurate data to your company is that it allows decisions to be made accurately. It allows your purchasing department to analyze spending at vendors that are used in more than one purchasing area. After a greater understanding of where money is spent across the enterprise, the company will have a greater leverage with vendors. It has been the norm for companies to pay vendors as late as possible. If the vendor has a contract for 45 days then they would never receive their payment before that 45th day. To encourage companies to pay their bills prior to the negotiated contract date, vendors have offered rebates, discounts and other incentives. But vendors have found that despite the incentives, companies still are not paying early. One theory is that companies enter the payment terms into their ERP system and forget about it. Checks are cut based on that data and the vendor incentives are never realized. A world class purchasing strategy should embrace these discounts and companies should make sure that they are taking every incentive possible. In these difficult economic times, companies cannot afford to pass up significant discounts. In addition, negotiations with vendors should also include obtaining greater discounts for payment on receipt of goods or even pre-payment.
It is just as important to communicate with your suppliers and vendors as it is to communicate with your customers. Establishing the proper communication channels and information flows between you and your suppliers can lead to increased efficiencies, reduced costs and better customer service. This section will cover the simple communication methods (i.e. telephone) and other ideas that will allow your company to build a win-win relationship with your suppliers and vendors.
Definition: Supplier Relationship Management is an all-inclusive approach to managing the affairs and interactions with the organizations that supply your company with goods and services. This includes communications, business practices, negotiations, methodologies and software that is used to establish and maintain a relationship with a supplier. Benefits include lower costs, higher quality, better forecasting and less tension between the two entities that result in a win-win relationship.
Also Known As: SRM, S.R.M.
Examples: Supplier Relationship Management can be simplified by using software especially designed to help businesses accomplish this function.
Implementing a World Class Purchasing Organization
Before implementing any purchasing best practices, there has to be the backing of senior company executives. Without the buy-in of senior executives, including the CEO and CFO, any attempts at developing a world class purchasing strategy will be smothered by middle management. Changes that have to be made in any company must be backed by senior executives in order to achieve results.Any company that has been procuring data over a period of time will have a database of vendors that contain current, duplicate, out of date and incorrect data. If you company has a number of geographically separate purchasing departments, the level of inaccuracy is multiplied. For a world class purchasing strategy to be implemented, the data from each purchasing department has to be updated to reflect the current vendor data and to be rationalized to eliminate duplicate, incorrect and unnecessary data. The benefits of having accurate data to your company is that it allows decisions to be made accurately. It allows your purchasing department to analyze spending at vendors that are used in more than one purchasing area. After a greater understanding of where money is spent across the enterprise, the company will have a greater leverage with vendors. It has been the norm for companies to pay vendors as late as possible. If the vendor has a contract for 45 days then they would never receive their payment before that 45th day. To encourage companies to pay their bills prior to the negotiated contract date, vendors have offered rebates, discounts and other incentives. But vendors have found that despite the incentives, companies still are not paying early. One theory is that companies enter the payment terms into their ERP system and forget about it. Checks are cut based on that data and the vendor incentives are never realized. A world class purchasing strategy should embrace these discounts and companies should make sure that they are taking every incentive possible. In these difficult economic times, companies cannot afford to pass up significant discounts. In addition, negotiations with vendors should also include obtaining greater discounts for payment on receipt of goods or even pre-payment.
mba_querries
Mba Mba
thanks fot the info on vendor development