Challenges In Supplier Buyer Relationship Management

Contents1.Supplier’s Track Record2.Understanding The Culture3.Lack Of Communication4.Process Transparency5.Stressed Supplier6.Damaged Delivery7.Training Suppliers8.Need to Nurture9.Disloyalty10.Manage Relationships Better With

Invoicera

Supplier’s Track Record❖The first step to take before engaging with any supplier is to

go through his past and current projects and to investigate his knowledge about tax and legal implication of exporting and importing.

❖Knowing the supplier beforehand helps to create and build a healthy relationship.

Understanding The Culture❖Belonging to a different culture may give rise to different

views and interpretations while having the same conversation.

❖As a business owner, one should familiarize himself with the supplier culture and make sure that the supplier is clear about the needs and requirements in terms of quality and other deliverable.

Lack of Communication ❖Communication is absolutely necessary in many aspects of

business. ❖If a supplier doesn’t understand the company’s strategic

goals, he won’t be able to fulfil the needs and this may lead to poor results.

❖Maintaining a good contact with the suppliers can benefit the organization in a big way.

Process Transparency❖Many a times, it has been observed that non-

transparency of the supplier’s process creates gaps in the company-supplier relationship. Technology can play a crucial role to fill this gap.

❖Both parties can use an online purchase order and invoice management tool like Invoicera to know and analyze the whole process more effectively.

Stressed Supplier❖Suppliers deal with many organizations at once. Often the

order is delivered late by the supplier because of unavailability of the product.

❖These type of late deliveries can weaken the relationship. Forecasting the requirements of the company can help in running the SRM process smoothly.

Damaged Delivery❖At times, the delivered product turns out to be damaged or

flawed. One should notify the supplier respectfully and ask him to replace it.

❖A healthy balance should be maintained while taking steps against suppliers who are under-performing.

❖They should be motivated and asked to improve quality and delivery in an appropriate manner.

Training Suppliers❖If the supplier doesn’t understand, what the company wants

its customers to experience through their products, he won’t be able to provide enough supplies.

❖One should make sure that the supplier know the company’s motto. They should be given appropriate trainings to ensure they understand the expectation levels.

The Need To Nurture❖A healthy relation only nurtures when the two sides stay

together for long. ❖Abandoning the suppliers at the time of success may create

stress in a relationship. ❖To avert this, one should include the supplier at every

milestone and success celebration of the company.

Disloyalty❖In time without recognition and encouragement, the

supplier becomes disloyal to an organization. ❖Changing the supplier is not the solution here, as it will

consume more time and money. ❖One can gain the loyalty of a supplier by encouraging him, or

perhaps, offering incentives if possible.

Manage Relationships Better With Invoicera

❖Send and Schedule Invoices to the buyers on time.❖Buyers can send purchase orders in a timely manager.❖ Suppliers can send in estimates for buyer approval.❖In case of a price settlement, the buyer can send in

appropriate credit notes.❖The buyer can get a free log-in to access all

invoices and account statements online.

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