It is also challenging to demonstrate the economic impact of
supplier diversity programs.
Organizations that use
supplier scorecards with all of their
suppliers have a median
supplier lead time three days shorter than those of organizations that have not implemented
supplier scorecards at all, and two days shorter than those of organizations that have implemented
supplier scorecards for only some of their active
suppliers.
The next time customers want to squeeze their
suppliers, they may want to use this list of 15 considerations and assess if it is better to create a partnership than risk converting a
supplier to a future competitor or losing a key
supplier to a key competitor.
The structural embeddedness of a
supplier pertains to which firms the
supplier is connected to and how these firms operate in broader networks.
Supplier relationship management (SRM) offers a seemingly comprehensive way to assess and streamline the processes between an enterprise and its
suppliers to make them more effective.
Attribute importance and store brand
supplier rating
SRM programs offer three primary benefits: improved
supplier performance, risk assessment and mitigation tools, and more valuable
supplier relationships facilitated by open exchanges of information.
Supplier selection has received a significant coverage in the purchasing and supply management literature (e.g., Petroni & Braglia, 2000; Weber, Current, & Benton, 1991; Weber & Ellram, 1992; Ellram, 1990; Dickson, 1966; Ghodsypour & O'Brien, 1998; Verma & Pullman, 1998; Krause & Ellram, 1997; Wilson, 1994; Min, 1993; Narasimhan, 1983; Swift, 1995; Soukup, 1987).
Diverse
suppliers are responsive, cost-effective, and contribute different thoughts and ideas.
The
supplier base is rich with opportunities to assist the manufacturer in meeting challenges to reduce costs, improve service, shorten lead times or deter competitor threats.
Removing the veil and the noise around financial interactions between trading partners results in a prize large enough for all to share--buyer,
supplier, financial provider and service provider.
Vendors: The vendors selling to the
supplier are at risk.