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End to End Supplier Management Process and Benefits In elementary terms, you can describe End to End Supplier Management process as a series of different process from the beginning to the end of the cycle. It starts with the initiation of a contract and ends with the delivery. You need a proper supply chain management system in place to generate the maximum profits. Let us see the benefits of the various aspects of the E2E Supplier Management Process.

a) Planning Planning is a crucial step in any supply chain management. You miss one step here, and you could end up regretting your decision. Planning involves checking the demand for the product, its viability, costing, human resources, profitability, and so on. Devote a lot of time to this stage of the process. It helps to identify the demand and supply trends in the market that could go on to define a successful supplier management process.

b) Sourcing Sourcing of the raw materials for the production of the goods is the critical element of End to End Supplier Management process. One needs different sets of raw materials to produce a variety of products. Sourcing them at cost-effective rates is essential. One should also note that a delay in the supply of raw materials on time can end up affecting the production cycle and thereby, your reputation. Hence, there should be an emphasis on procuring good quality raw materials in time. Secondly, a sound supplier information management system can help in sourcing the raw materials at the optimal cost.

c) Inventory Inventory management is the most important aspect of the supply chain management process. Maintaining inventory is crucial to the business. Nowadays, you have supplier management software systems that enable you to manage your inventory effectively. The trick to success is not only in the maintaining of the inventory but also in updating it. Updating the inventory enables you to judge whether you have a shortfall. It can help you to procure the elements in time so that the production cycle runs along smoothly.

d) Production The production cycle begins after you complete the three steps mentioned above. Planning and sourcing of the raw materials help you in maintaining adequate inventory. The product cycle is essential as it makes effective use of the stock on hand to manufacture the products. This cycle involves various processes such as testing, packaging, and final preparation for the delivery of your product to the consumer. A good production cycle is necessary to manufacture an excellent product. The cost of the production cycle is also vital as it plays a crucial role in deciding the price of the product and thereby your profitability.

e) Location The location of your production unit is a crucial factor because it can reduce the overhead costs of production. For example, a plant for manufacturing carbonated drinks should be in a location where water is available in plenty. Any scarcity of water can make you source this essential raw material from other places. It not only delays the production but also makes it expensive.

f) Transportation Transportation of goods and raw materials affects the cost of the product. It is not always possible to avoid transportation costs as every manufacturing company has to transport raw materials and finished goods. One can minimize the losses by using an in-house transport system or by outsourcing to a reliable transporter. It helps in reducing the loss caused due to damage to the products in transit. Hence, it is essential to have a well-managed logistics system to supplement your supplier management processing.

g) Return of goods In spite of taking all the precautions during the production, packing, and transporting of the products, damages can occur. The customer has a right to return the goods if there is a manufacturing or transportation defect in the product. Hence, every business should have a clear policy regarding the return of the goods. Having an effective returns policy can help in building up a good bonding with the customer. It is one of the primary pillars of supplier performance management.

We have seen seven principal aspects of the end to end supplier management process and discussed the benefits of having effective supplier management processes.

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End To End Supplier Management  

Denali's End To End Supplier Management process enhances the growth of procurement BPO. Gain competitive edge with supply and demand chain t...

End To End Supplier Management  

Denali's End To End Supplier Management process enhances the growth of procurement BPO. Gain competitive edge with supply and demand chain t...