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. Below is a brief look into why building strong vendor relationships is so important, along with a few approaches to improve how they are managed.
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.
On the other hand, those who are not properly invested in modern vendor management or do not oversee relationships effectively face potential losses. Whether it’s lost revenue or valuable time exhausted to fix mistakes that could’ve been avoided with a more streamlined process, the possible detriments make vendor relationship management essential in today’s fast-paced, ultra-competitive market.
Although many look at vendor relations as simply a series of transactions between the organization and third parties, it’s vital to realize that effective vendor management extends far beyond such direct transactions. To get the most value from their vendor relationships going forward, companies of all sizes must carefully consider every aspect of their buyer-supplier relationships and devise a more contemporary and collaborative vendor relationship management strategy.
For further information on improving vendor management, please see the accompanying resource.