Supplier Development and Remediation: The Key to Sustained Supplier Success
Supplier development and remediation is the process of developing relationships with suppliers to ensure that the company has a continuous and reliable supply of goods and services.
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Supplier development is an essential component of any company's business. It can be a complex process, with many risks and rewards. There are many benefits to this process, including cost savings through improved price negotiation, access to new markets through a supplier's existing distribution channels, and improved quality through more control over the manufacturing process.
A supplier development program can be a formal process or it can be informal.
Evaluating Supplier Performance
Supplier performance is an important part of any company's supply chain. Suppliers can make or break a company, so it is important to evaluate their performance. It is best to evaluate suppliers on a regular basis, and if they are underperforming, the company should consider finding new suppliers. Supplier evaluations are usually performed by a team of employees who evaluate the supplier's performance on a variety of factors.
Some of the things that can be evaluated in supplier performance are quality, delivery times, and cost. A supplier's quality should be evaluated first because poor quality often leads to late deliveries and an increase in costs. Delivery times will also depend on the supplier's location, so it is important to take this into account when evaluating their performance.
If a supplier is performing well, they can be rewarded with more business and given more opportunities for growth. If they are performing poorly, they can be let go in order to save money and find a more reliable supplier.
Supplier remediation is a process to identify and manage supplier risks.
Supplier risk is the risk that suppliers may not be able to meet their commitments.
Supplier remediation includes:
-Identifying suppliers who are at high risk of not meeting commitments, and proactively managing those suppliers.
-Identifying potential new suppliers who can meet commitments.
-Identifying and managing other risks that could affect the ability of suppliers to meet commitments.
-Regularly reviewing the effectiveness of the supplier remediation process.
The supplier development and remediation process needs to be an integral part of supplier management because it helps to identify and manage risks that could affect the ability of suppliers to meet commitments.