For many, the turmoil surrounding the supply chain over the past few years has shed light on areas in need of improvement. One such aspect of business that companies who rely on suppliers now understand to be more critical than previously thought is vendor relationship management.
First, what is vendor relationship management? Essentially, it is the process of deepening buyer-supplier relationships to establish a stronger foundation of trust and achieve mutually beneficial outcomes. When this process is refined and relationships enriched, it can lead to a host of key benefits including a smoother flow of data, improved operations and much more.
As all vendors and their roles differ, vendor relationships cannot all be handled the same. Therefore, a well-devised process should be developed to improve the vendor procurement and investment process at the onset. Doing so starts by taking the time to investigate potential vendors and understand how their businesses work. Not only might having these solid vendor management practices in place lead to more informed decisions, but they could improve negotiations as well. After all, when the partnership is based on forming a relationship that both parties want to last and has been negotiated in good faith, it can be more lucrative overall.
For further information on improving vendor management, please see the accompanying resource.