• December 7th, 2015
  • Posted by LEP Weekly

Are Suppliers Putting Kinks in My Supply Chain?

Managing a supply chain can be a strenuous job. No matter how accurately a company tries to forecast production needs, there is always a chance that the product could become an “overnight success”. This results in the product demand exceeding projected numbers and may give a manager very little time to properly fulfill order procurement. A company can become vulnerable to profit loss and high material costs if they do not have a solid and flexible supplier network. Knowing what attributes to look for in a potential supplier and possessing strong negotiating techniques are crucial to managing a profitable supply chain. In addition to strong supplier relationships, it is imperative to monitor key performance indicators (KPI’s). Knowing and regularly reviewing your company’s KPI’s can help track production inefficiencies resulting in the discovery of lost profit. How can you determine if suppliers are putting kinks in your supply chain?

As a Manager, ask yourself the following questions:

  • Over time have we incurred higher material and service costs?
  • Has our selection criteria for suppliers been unsuccessful in the past?
  • Do we suffer from ineffective negotiation strategies?
  • Have our supplier contracts expired and not been renegotiated?
  • Is there little time allocated to the negotiation of contract terms?
  • Is the workload distribution between buyers and suppliers inadequate?
  • Is the line of communication between stakeholders and departments broken?
  • Are Key Performance Indicators being reviewed regularly?
  • Does our management team engage in non-standardized procedures and work methods?

If you answered YES to any of these questions:

Your supply chain is not functioning at maximum profitability levels. Lean Enterprise Partners approach to Supply Chain Management makes it possible to improve a buyer’s negotiating skills in order to increase savings related to negotiations. Our program will also teach buyer’s how to clarify criteria needed for selecting suppliers. Learning these techniques will help improve business relationships while also optimizing the terms of supply contracts. Lean Enterprise Partners will provide your company with a customized Supply Chain Management program that has the potential to result in the following:

  • An increase in savings related to negotiations.
  • Improved contract term optimization (deadlines, payments, quality).
  • Enriched business relationships with suppliers.
  • Improvement of buyers negotiation skills.
  • Increase in the productivity of resources.
  • Level 5 Supply Chain Management certifications.
  • A reduction in operating costs.
  • Proactive management and culture initiatives.
  • Stronger communication structure across multiple departments.

Who is Lean Enterprise Partners?
Lean Enterprise Partners (LEP) is a private Lean Consulting firm that is focused on doing more with less, getting it right the first time and delivering practical solutions that establish accountability, credibility and sustainability. We offer customized programs that are guaranteed to generate results. Contact us today to learn more! (724) 485-2577

 

 

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