Post on 09-Jan-2017
The importance of supplier relationship
Prepared by BRIOUAL
Amal KHCHAF
Mouna TAHIRI
Soukaina
SOLARIS
• What is the SR ? • How it works ?
Definition of the supplier relationship
The unbroken Supply chain
Context
• What are the problems associated with SR ?
• How does SR empower compagnies ?
Strenght and Weaknesses of a SR
Outline
The importance of SR
Why Strategic Supplier Relationships are Important ?
Supplier relationship is everything you do with suppliers and in your supply market, not related to a specific contract,
It is a discipline of working collaboratively with those suppliers that are vital to the success of your organization, to maximize the potential value of those relationships.
Supplier relationship is critical to any organization while suppliers can directly impact the financial performance of a buying enterprise, as they influence product development costs, inventory levels, manufacturing schedules and the timelines of delivery of goods and services.
Determining the supply and purchasing strategies.Working procedures with suppliers.Selection of suppliers and evaluation criteriaManagement of contracts with suppliers to doLook towards the same strategic objectives with
suppliers.Good communication with suppliers. Evaluation of other suppliers which are candidate for
your supply chain.
How SR works
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+++What Is The Problem With Suppliers?
- Unclear expectations- Not mutually beneficial (Win-Win)- Multi-supplier environment- Miscommunication- Poor governance- Poor cultural fit- Lack of coordinated management
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Elements of successful supplier relationships Focus : A common vision for the relationship,
with agreed strategies and activities Trust : Open communication and disclosure of
business drivers Performance : Continuous improvement
towards agreed targets and KPIs People : Clearly defined roles and responsibilities Proactive : Anticipating business needs and
providing creative solutions Profit at Risk: Establishing real metrics to drive
behaviour for both parties
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The supply chain
Supply Chain should be one single, unbroken chain from the supplier’s processes through the customer’s
Buyers must have the same expectations from themselves and their companies as they have of their suppliers
One weak link can disrupt the entire supply chain
SELL RECEIVE ORDER SCHEDULE/PLAN MANUFACTURE SHIP PAYMENT
SOLARISWhy Strategic Supplier Relationships are
Important1.A new supplier commences operations every minute2.A supplier files bankruptcy every 8 minutes 3.A supplier ceases operations every 3 minutes4.A judgment is filed against a supplier every 14
seconds5.A supplier name change happens every 2 minutes6.A supplier ownership change happens every 4 hours7.A supplier’s risk profile changes every minute
…world of constant change and challenges (opportunities)
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Conclusion
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+++Think big, Win the world