Manufacturers are realizing the benefits of tightening relationships with suppliers to better manage the procurement of goods and lower supply costs. Collaborative processes transform a typical transaction-based association with suppliers into two-way-access and a mutually beneficial relationship. This builds a more effective manufacturer-supplier partnership that lowers inbound supply costs and improves supplier performance. Both parties gain from accurate and timely access to order, shipment, schedule, invoice, inventory and other related information. Or, as one QAD client stated, “The YFAI India plant and all our suppliers can now plan resources, machines, manpower, everything – based on these updatable schedules.”
Companies that strive to build a more holistic relationship with their suppliers must commit to collaboration on a day-to-day basis and treat it as a vital step in building trust with the supplier ecosystem. More cooperation during day-to-day supply chain operations, as well as quicker responses to changing orders and schedules, benefit both parties. Often, your organization will see lower procurement costs, improved operational efficiency and greater customer satisfaction as a result of improved collaboration with suppliers.
Supplier Challenges Exist
Manufacturers still rely on outdated processes or fail to understand the role supplier integration plays in maximizing global supply chain performance. Organizations we work with often mention the desire for a single source of truth that improves decision-making with suppliers based on the same set of information. Along with the global and swiftly changing nature of sourcing, inbound supply challenges include:
- Carrying too much inventory to address potential supply disruptions
- Excessive premium freight charges to meet customer delivery expectations
- Inability to accurately track and trace purchase orders, shipments, receipts and invoices
- Mismanaged documents and processing errors leading to slow cycle times
- Inefficient procurement workflow and processing causing unproductive supplier relationships
- Buyers spending too much time “fighting fires” and addressing unexpected supply disruptions
QAD Demand and Delivery Delivers Benefits
Successful supplier collaboration relies on transparency and aligned objectives with supply trading partners. Collaborative processes provide a foundation for a responsive and flexible supplier network that responds instantly to market volatility and changing customer demands. QAD Demand and Delivery is a cloud-based supplier collaboration solution that increases the availability and visibility of critical order, schedule, inventory, shipment, invoice and other information with suppliers. With greater access to shared information, you and your suppliers can respond quicker to possible inbound supply issues that will disrupt your business and impact the customer experience. Additional business benefits include:
- Reduce inventory investment without risking material shortages and downtime
- Eliminate processing errors by replacing manual methods with digital communication
- Lower procurement costs with supplier self-service and proactive alerts
- Improve supplier performance with quicker and easier access to inventory, order, shipment and invoice information
- Cut production delays by ensuring timely delivery of material through accurate and automated receipt management
- Increase order fill rates and procurement team productivity
- Decrease error rates with full error correcting techniques and accurate labeling
- Better control supply chain risk with greater inventory accuracy across complex warehouse and space management operations
To find out more about QAD Demand and Delivery, please visit our website.
