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 helps align key values to build continuous innovation, lower inbound supply costs and improve supplier performance. Both parties gain from accurate and timely access to product design, sourcing, order, shipment and other related information.
Supplier Relationship Challenges
It’s still common for manufacturers to conduct sourcing and supplier management activities with a mix of spreadsheets, emails, phone calls and buyers’ memories to track hundreds of supplier details. Resulting issues from manual efforts include a lack of process governance and overlooked supplier insights. Missed opportunities for manufacturers not only include an inability to address supplier quality during the evaluation process, but also supplier performance and supplier development opportunities that could add business value.
Manufacturers we work with consistently mention their 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
- Changing sources of supply and burdensome supplier rationalization
- Inconsistent supplier sourcing and onboarding processes
- 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 SRM (Supplier Relationship Management) 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 SRM provides manufacturers and their suppliers a single point of entry to facilitate real-time communication, improve procurement processes and reduce inbound supply risks. With the following products, QAD SRM delivers value across direct and strategic indirect procurement activities by improving strategic sourcing, supplier management, contract management and supplier performance:
- QAD Auctions delivers superior sourcing results by tailoring the auction design to the negotiation situation and awarding strategy.
- QAD Demand and Delivery ensures visibility and collaboration on inventory, schedules, orders, shipments, invoices and replenishment requirements.
- QAD Sourcing manages the electronic RFQ process with suppliers, from recording requirements to the RFI, RFQ, contracts and finally the order.
- QAD Supplier Management manages all supplier information to reduce discovery, onboarding and qualification cycle time.
To find out more about QAD SRM, please visit our website.
