Category Archives: Supplier Relationship Management
In recent years technology has opened new pathways for manufacturers and distributors leading to a revolution in exchanges due to online communication and marketplaces. With this recent development, companies have been encouraged to change and go through a digital transformation to adapt to this new world.
Communication between the manufacturers and the suppliers is crucial for the development and survival of a product. This is accomplished through having the PLM which in the end facilitates that necessary exchange. The Supplier Portal increases the trace ability and control of the information and data in order to have a better distribution and manufacturing of the product.
To overcome today’s challenges, smart retailers are taking a more focused look at collaborating with their supplier, seeing them as partners. A successful retailer-supplier collaboration can help smooth pressures along the product lifecycle. A strong partnership brings products to market faster, reduce costs, increase sales and market share, while maximizing ROI for both parties.
Main reasons to improve collaboration are:
As consumers grow more demanding, retailers need to ensure products are available at the right time, through the right channel and at the right price. While it seems collaboration between retailers and suppliers has existed forever, it has become more essential for success. While today’s manufacturers and retailers are each facing significant but unique challenges, there is common goals that drives collaboration – higher sales, increased profitability, and stronger business growth. Indeed, an ECR-McKinsey survey shows that an effective collaboration between retailers and suppliers results in a cost reduction of 5.4%. and a 4.4% decrease in out-of-stocks. It also increases revenues by 3.7% more than the average company.Read More